Tyson Foods Builds on its Commitment to Sustainability Through Acquisition of American Proteins and AMPRO Products Assets
May 15 2018 - 9:06AM
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
STATEMENTSThis 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.
Media Contact: Worth Sparkman, 479-290-6358,
worth.sparkman@tyson.com Investor Contact: Jon
Kathol, 479-290-4235, jon.kathol@tyson.com
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