SPRINGDALE, ARK. — Tyson Foods, Inc. has entered into a definitive agreement to acquire the Thai and European operations of Brazilian food processor BRF S.A. for $340 million. The transaction includes four processing facilities in Thailand, a processing facility in the Netherlands and a processing facility in the United Kingdom.
“As noted when we acquired Keystone Foods on November 30, we believe some of our biggest growth opportunities are in value-added foods and international markets,” said Noel White, president and chief executive officer of Tyson Foods. “In addition to domestic benefits, the Keystone acquisition provided us with a scalable production platform in the Asian poultry market. The acquisition of these BRF facilities will help complement and strengthen our presence in Thailand, and provide new capabilities in Europe, enhancing our ability to serve growing global demand for value-added protein.”
The poultry operations in Thailand include a feed mill, hatchery, breeder farms and contract growing operations. The four plants there produce fresh and frozen, value-added raw and fully cooked poultry products, including highly specialized cuts, for retail and food service customers throughout Asia and other export markets, including Europe.
The processing facilities in the Netherlands and U.K. include in-house innovation capabilities for developing further-processed chicken products for retail and food service customers throughout Europe under brands including Grabits, Hot ‘N’ Kickin’ Chicken, Speedy Pollo and Sadia, as well as key customer-owned brands.
“It’s estimated that approximately 90% of global protein consumption growth will occur outside the United States, with 60% of the volume growth coming from Asia over the next five years,” said Donnie King, group president of International for Tyson Foods. “Increasing our international footprint with in-country operations and export capabilities will help Tyson Foods strategically access new markets and better serve the growing global demand for our value-added protein.”