Tyson invests in rendering, blending

by Joel Crews
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SPRINGDALE, Ark. – Tyson Foods Inc. announced an agreement to acquire the poultry rendering and blending properties of American Proteins Inc. and AMPRO Products Inc. for $850 million. The acquisition includes four rendering plants in Georgia and Alabama as well as 13 blending facilities located in the Southeast and Midwest. Officials said most of American Proteins’ 700 employees are expected to continue working after the deal is finalized. Tyson said the deal is part of its strategy to invest in the animal feed ingredient segment and recycle more animal products for pet food, feed and aquaculture.

“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, Tyson’s group president of poultry.

Tyson estimates the new business will add approximately $550 million in net sales in the coming year and expects synergies will be driven by manufacturing efficiencies, mix optimization and distribution network consolidation.

“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.”

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By Carrick Wells 5/15/2018 2:46:59 PM
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By Linda Ross 5/15/2018 1:23:29 PM