Tyson Foods, Inc. (NYSE: TSN) has announced the acquisition of the Thai and European operations of BRF. The USD 340 Million deal includes six total processing facilities, four of which are located in Thailand, one in the Netherlands and one facility in the United Kingdom.
“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” said Noel White, president and CEO of Tyson Foods.
Thailand’s poultry operations include a feed mill, hatchery, breeder farms and contract growing operations supplying live birds for the four poultry processing facilities. Processing locations in the Netherlands and the United Kingdom are supported by the production of further-processed chicken products for retail and foodservice customers throughout Europe.
“It’s estimated that approximately 90 percent of global protein consumption growth will occur outside the United States, with 60 percent of the volume growth coming from Asia over the next 5 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.”
BRF, founded in 1934, maintains a portfolio that includes more than 30 brands. In addition to the Company’s 100,000 employees worldwide, BRF is supported by more than 13,000 integrated producers, over 30,000 suppliers and more than 200,000 consumers.
BofA Merill Lynch will act as the exclusive financial advisor to Tyson Foods on the acquisition. Clifford Chance LLP will act as its legal counsel for the transaction. Subject to regulatory approval, the transaction is expected to close before the end of the Company’s fiscal third quarter. Additional terms of the deal have not been disclosed.