Combining both beef businesses will consolidate Teys' position as the second-largest beef processor and exporter in Australia. The joint venture will have the capacity to process 1.5 million head of cattle per year.
Cargill and Teys will equally share board representation. Allan Teys will be chairman in the new company, and Brad Teys will serve as the CEO. Geoff Teys will be responsible for cattle procurement. The company's head office will be located in Beenleigh, Queensland.
The joint venture will include assets of both companies' existing beef processing and cattle feeding businesses, Teys' tannery and value-added facilities and Teys' share of its wholesale divisions.
Since its humble beginning in 1946, Teys has become Australia's second largest beef processor and exporter with a reputation second to none, said Brad Teys, CEO of Teys Bros. “We are proud of this heritage and confident this partnership with Cargill, a global leader in the food industry, will create a world-class company and a flagship for the Australian beef industry,” he added.
"Both Cargill and Teys are committed long-term to the Australian beef industry,” said Bill Buckner, Cargill senior vice president. “Cargill believes that combining Teys and our Australian beef business is the best way to grow and better serve our Australian and global customers. Our partnership will leverage the strengths of both companies.
“Our dedication to quality and food safety has driven progress and innovation throughout the industry, and we remain committed to always enhancing our role as an industry leader,” he added. “By joining forces with Teys, we will continue to aggressively pursue and create distinctive value that has a positive impact on our employees, customers and communities, as well as enhancing our overall business performance.”