As part of efforts to meet growing global demand for protein,
US-based Tyson Foods, Inc. (NYSE: TSN) and Saudi-based Tanmiah Food
Company (“Tanmiah” or the “Company”, 2281 on the Saudi Exchange)
have entered into a strategic partnership.
Tyson Foods is one of the world’s leading food companies and a
recognized leader in protein while Tanmiah is a provider of fresh
and value-added poultry and other meat products, animal feed and
health products and a foods brand franchise operator.
Through the agreement, Tyson Foods will acquire a 15% equity
stake in Tanmiah subsidiary Agriculture Development Company (ADC)
and a 60% equity stake in Supreme Foods Processing Company. The
transaction is still subject to approval by KSA regulators.
ADC is a fully integrated poultry company that produces broiler
chickens and operates hatcheries and feed mills. It sells fresh
poultry under the Tanmiah brand to retailers and food service
customers. Supreme Foods produces a variety of value-added and
cooked chicken and beef products with a distribution network spread
across the Middle East, including Saudi Arabia, Kuwait, Bahrain,
UAE, Oman, Lebanon, and Jordan among others.
“This investment will enable us to access poultry supplies in
Saudi Arabia to meet the growing demand for protein in the Middle
East and other markets,” said Chris Langholz, president of
International for Tyson Foods. “Expansion into international
markets is a key part of our strategic growth plan and we’re
pleased to better serve customers in this region.”
“The strategic partnership is expected to accelerate Tyson
Foods’ and Tanmiah’s growth and generate significant value in the
short and long term,” said Tan Sun, president of Tyson Foods APAC.
“This will be primarily achieved through further expansion across
the value chain, and enhanced product, customer, and geographical
diversification, as well as improvement of production and other
operational processes. The agreement will also see Tyson Foods and
Tanmiah unlock long-term opportunities in the growing Halal food
market.”
As part of the agreement, Tyson Foods and Tanmiah have committed
to invest to expand the processing capacities of Supreme Foods.
This investment is aligned with Tanmiah’s strategic expansion
agenda and will result in doubling the company’s production
capacity in further processed products. It will also enable Tanmiah
to introduce new complementary products to the market, enhancing
the diversification of the product portfolio.
“We are delighted to be joining hands with a well-renowned
global leader in food production to accelerate our growth and
development agenda,” said Zulfiqar Hamadani, CEO of Tanmiah. “Our
strategic partnership marks a significant milestone in Tanmiah’s
journey and demonstrates our commitment to growth and supporting
Saudi Arabia’s food security objectives. We are ready to embark on
this new phase with Tyson Foods, whose commitment to animal
welfare, food safety, sustainability, and efficiency, are very much
in line with our own business model and sustainability framework.
This transaction will not only reinforce our positioning in the
domestic market but will also enable us to expand our global
footprint through leveraging Tyson Foods’ long-standing
relationships with customers worldwide.”
“In line with our ambitious growth plans and ongoing endeavors
to deliver significant long-term value to shareholders and
customers alike, we proudly announce Tanmiah’s partnership with
Tyson Foods,” said Ahmed Bin Sharaf Osilan, Executive Board Member
& Managing Director of Tanmiah. “We are
excited about the substantial synergies that we expect this
transaction will enable us to realize across all stages of the
supply chain from sourcing of materials to production and final
distribution, in addition to supply chain efficiencies and improved
margins. Alongside the significant opportunities that will be
unlocked for the company in the future, we remain dedicated to our
pioneering role in supporting Saudi Arabia’s food security and
self-sufficiency goals. We are also looking forward to further
advancing our technical expertise by collaborating with Tyson Foods
to extend innovative and diversified product offerings to a broader
base of customers in the Kingdom and abroad.”
The financial impact of the transaction is expected to be
reflected in Tanmiah’s third quarter financial statements and is
subject to final payment of costs associated with the
transaction.
The investment in Tanmiah aligns with Tyson Foods’ strategy of
expanding value-added capacity in its international business. The
company expects to open seven new fully cooked
plants outside the U.S. over the next two years, with six in
Asia and one in Europe. Global protein consumption is
forecasted to rise by close to 95 billion pounds over the next 10
years, with much of that demand happening outside the U.S.
Total Tyson Foods sales from international business and exports
represented 14% of total company sales in fiscal year 2021. This
included $4.8 billion in U.S. export sales and $2.0 billion in
foreign country revenues.
ABOUT TYSON FOODSTyson Foods (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 four
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 had
approximately 137,000 team members on October 2, 2021. 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 Tanmiah Food CompanyTanmiah Food Company
is one of the Middle East’s leading providers of fresh poultry,
processed poultry and other processed meat products as well as
animal feed and health products. With roots going back to 1962,
Tanmiah is part of the Al-Dabbagh Holding Group. Tanmiah’s fully
integrated and highly efficient business model includes production,
further processing and distribution with products sold in Saudi
Arabia, the UAE, Bahrain, Lebanon, Oman, Jordan, and Kuwait. As of
31 March 2022, Tanmiah operates 93 farms as well as 6 hatcheries, 2
feed mills, 4 slaughterhouses, 3 food processing plants, and 13 dry
and cold storage facilities located in Saudi Arabia, Bahrain and
the UAE. Tanmiah distributes its products through a network of
distributors, wholesalers and retailers as well as online direct to
consumers. Sustainability is a core principle at Tanmiah with
initiatives including planting trees fed by wastewater from its
facilities and turning waste products into fertilizer. For more
information, visit www.tanmiah.com Media
Contacts:
Tyson Foods Derek
Burleson479-290-6466derek.burleson@tyson.com
Tanmiah Food CompanyMr. Hussam
Al Shareef, Investor Relations Manager Tel. +966 114775912Email
ir@tanmiah.comP.O. Box 86909Riyadh 11632, Kingdom of Saudi
Arabiawww.tanmiah.com
Forward-Looking Statements This communication
contains forward-looking statements, including statements regarding
expected demand and consumption, protein supplies, synergies,
capacity and customer growth, market opportunities, and benefits of
the consummation of the strategic partnership described above, any
and all of which involve a number of risks and uncertainties,
including the satisfaction of closing conditions for the
transactions (such as regulatory approval); the possibility that
some or all of the transactions will not be completed; customer and
consumer preferences; the impact of general economic, industry,
market or political conditions; and/or expected protein consumption
growth does not occur. These statements constitute forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934. The
words “will,” “should,” “estimate,” “expect,” “intend,” “believe”
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
Tyson Foods does not undertake any obligation to update any
forward-looking statement except as required by law.
Category: IR
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