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Tyson to Buy Rendering and Blending Businesses for $850M

May 15, 2018
Image courtesy of Tyson Foods
Image courtesy of Tyson Foods

Moving to boost its position in the animal feed ingredient business, subsidiaries of Tyson Foods Inc. plan to purchase the poultry rendering and blending businesses of American Proteins Inc. and AMPRO Products Inc., the Springdale, AR-based food company announced Tuesday.

Under the terms of the $850 million deal, four rendering plants in Georgia and Alabama will come under Tyson’s ownership, as well as 13 blending facilities across the Midwest and southeastern states. The company said the transaction allows Tyson to recycle more poultry materials for use in feed, pet food, aquaculture and other products.

“This acquisition is a great compliment to our existing business, gives us the ability to render raw materials in a region we don’t currently serve, and better positions us to meet the competitive, fast-growing national and global demand for animal protein,” Tyson Foods Group President of Poultry Doug Ramsey said in a company press release.

Some 700 employees of American Proteins are slated to join Tyson after the sale. Expecting synergies from manufacturing efficiencies, mix optimization, and consolidating its distribution network, Tyson said the newly-purchased business is slated to reach net sales of over $550 million during the next year.

Completion of the transaction is subject to regulatory approvals and other closing conditions.