Cargill is to acquire full ownership of beef processor Teys Investments by buying out the remaining shares from the family shareholders.
The deal will see the US-based agri-food giant take full-ownership of Teys Investments through an unspecified wholly owned subsidiary and it will also give Cargill control of Teys Australia and Teys USA.
Go deeper with GlobalData
Those units are “two of the primary operating companies which are currently jointly owned by Teys and Cargill”, according to a statement, which did not disclose the financial terms.
Cargill and the Teys family have operated the 50-50 joint venture since September 2011.
Teys, which was established by the family in 1946, said the business has “decided it is the appropriate time to transfer the family’s interest to Cargill”. The Australian company said the change of ownership “provides continuity” for Teys’ employees, partners, and producers.
Teys executive chairman Brad Teys said: “Cargill has been instrumental in our transformation into a world-class food company. We are confident they are the best owner to grow the business into the future.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataJon Nash, Cargill’s executive vice-president, said: “As family-owned businesses, both Cargill and Teys share the same commitment to nourishing Australia and the rest of the world in a safe, responsible and sustainable way.”
The deal is anticipated to close in the second half of this year, contingent on regulatory approvals and other customary conditions.
Cargill said it will appoint a new CEO for Teys “in due course” and work with Brad Teys to support a smooth transition.
Meanwhile, Cargill is investing around $90m in automation and new technologies at its Fort Morgan, Colorado, beef plant, according to a separate statement.
The move, part of its Factory of the Future initiative, aims to “improve operational efficiencies” and “increase yields”.
Since 2021, Cargill said it has spent $24m on technology upgrades at the facility.
As part of the upgrade, the company will deploy its in-house CarVe system, a computer vision technology that can measure red meat yields in real time. This solution, the company said, provides managers with “instant insights” and the ability to share feedback with employees to refine cutting techniques.
“CarVe helps keep more protein in the food system that otherwise would be lost in the process,” the company said.
In January, Cargill announced plans to shut a turkey-processing site in the US.
Cargill said it would shift “much of Springdale’s production” to other turkey-processing plants in Missouri and Virginia.
In December, Cargill also said it planned to cut 5% of its global workforce, which, based on data in the US-headquartered agri-food giant’s annual report, would amount to around 8,000 jobs.
