Transaction enhances company’s ability to recycle material
Springdale, AR and Cumming, GA (GLOBE NEWSWIRE) - Subsidiaries of Tyson Foods, Inc. (NYSE:TSN) have agreed to buy the poultry rendering and blending assets of American Proteins, Inc. and AMPRO Products, Inc., the companies announced today. The acquisition is expected to enable Tyson Foods to recycle more animal products for feed, pet food and aquaculture, among other things, and expand its presence in the growing animal feed ingredient business. The agreement is subject to customary closing conditions, including regulatory approval.
“Rendering plays a key role in growing our business and helping us deliver on our sustainability goals,” said Tom Hayes, president and CEO. “Through this important business, no part of the animal goes to waste, and we can recycle valuable ingredients into feed for pets and aquaculture.”
Rendering is an environmentally friendlier way to keep animal products out of landfills and potentially reduce greenhouse gas emissions. According to the National Renderers Association, rendering’s contribution to carbon emission reduction in the U.S. and Canada is equivalent to removing more than 12 million cars from the road annually.
“This acquisition is a great complement 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,” said Doug Ramsey, group president of poultry for Tyson Foods.
The acquisition includes four rendering plants located in Georgia and Alabama and 13 blending facilities located throughout Southeastern and Midwestern states. The facilities are expected to provide additional capacity to Tyson’s current animal byproducts business. Approximately 700 people work for American Proteins and most are expected to become Tyson Foods team members.
Mark Ham, president and CEO of American Proteins said, “We value and appreciate our 700 plus employees as well as the relationships we have with our suppliers and customers, and are confident that after the transaction closes the Tyson team will offer them the same commitment to service and quality as provided by American Proteins.”
The purchase price is approximately $850 million. Over the next 12 months, the business is expected to generate adjusted net sales of more than $550 million. Tyson expects to realize synergies over time driven by manufacturing efficiencies, mix optimization and distribution network consolidation.
“American Proteins’ management team has built a great business and the production teams have done a wonderful job making animal feed ingredients for years. We admire the company and believe this will be a good cultural fit,” Ramsey said. “Investing in this part of our business is an investment in the future sustainability of our company.”
Tyson Foods recently announced its goal of reducing greenhouse gas emissions 30 percent by 2030, including a commitment to support improved environmental practices on two million acres of corn by the end of 2020 — the largest-ever land stewardship commitment by a U.S. protein company. More information about Tyson Foods’ commitment to sustainably feed the world with safe, high-quality and nutritious food products is available in its 2017 Sustainability Report.
About Tyson Foods
Tyson Foods Inc. (NYSE:TSN) is one of the world’s largest food companies and a recognized leader in protein. Founded in 1935 by John W. Tyson and grown under three generations of family leadership, the company has a broad portfolio of products and brands like Tyson®, Jimmy Dean®, Hillshire Farm®, Ball Park®, Wright®, Aidells®, ibp® and State Fair®. Tyson Foods innovates continually to make protein more sustainable, tailor food for everywhere it’s available and raise the world’s expectations for how much good food can do. Headquartered in Springdale, Arkansas, the company has 122,000 team members. Through its Core Values, Tyson Foods strives to operate with integrity, create value for its shareholders, customers, communities and team members and serve as a steward of the animals, land and environment entrusted to it. Visit www.tysonfoods.com.
About American Proteins
American Proteins was founded by Leland Bagwell in 1949 who subsequently turned over the management of the company to his son Tommy Bagwell in 1972. For sixty-nine years the Bagwell family, through American Proteins and it’s 700 plus dedicated employees, has serviced the poultry industry from its plants in Georgia and Alabama and supplies feed ingredients for pets and farm animals throughout the world through its subsidiary AMPRO Products providing custom blended protein feed products meeting national and international demand for consistent quality ingredients. Visit www.americanproteins.com for more about American Proteins.
Cautionary Statement Regarding Forward-Looking Statements
This communication contains forward-looking statements, including statements regarding the expected consummation of the acquisition, which involve a number of risks and uncertainties, including the satisfaction of closing conditions for the acquisition, such as regulatory approval for the transaction; the possibility that the transaction will not be completed; the impact of general economic, industry, market or political conditions; risks related to the ultimate outcome and results of integrating the assets and business operations of American Proteins, Inc. and AMPRO Products, Inc.; the ultimate outcome of our strategy applied to this transaction and the ultimate ability to realize synergies; the effects of the business combination, including our future financial condition, operating results, strategy and estimates; and other risks and uncertainties, including those identified in our Annual Report on Form 10-K for the year ended September 30, 2017, and any subsequent quarterly reports on Form 10-Q. The words “will,” “anticipate,” “expect,” and other similar expressions (or the negative of such terms) are intended to identify forward-looking statements. If underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results and the timing of events may differ materially from the results and/or timing discussed in the forward-looking statements, and readers are cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements speak only as of the date of this communication, and we do not undertake any obligation to update any forward-looking statement except as required by law.
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SOURCE: Tyson Foods, Inc.