US meat giant Tyson Foods is buying the poultry rendering and blending assets of American Proteins and one of that company’s subsidiaries, AMPRO Products, for around US$850m.
The deal is expected to allow Tyson – which also owns well-known food brands – 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.
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Tom Hayes, Tyson’s president and CEO, said: “Rendering plays a key role in growing our business and helping us deliver on our sustainability goals. Through this important business, no part of the animal goes to waste, and we can recycle valuable ingredients into feed for pets and aquaculture.”
The acquisition includes four rendering plants in Georgia and Alabama and 13 blending facilities located throughout south-eastern and mid-western states. The facilities are expected to provide additional capacity to Tyson’s current animal by-products business.
American Proteins, founded in 1949, does business with the poultry industry and supplies feed ingredients for pets and farm animals.
It set up AMPRO Products in 1988 amid demand, it says, for custom, blended protein feed products.
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By GlobalDataMark Ham, the 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.”
Tyson suggests over the next 12 months, the acquired business will generate adjusted net sales of more than $550m. It said it also expects to realise synergies over time driven by manufacturing efficiencies, mix optimisation and distribution network consolidation.
Tyson recently announced its goal of reducing greenhouse gas emissions by 30% by 2030.
Rendering is described as 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 US and Canada is equivalent to removing more than 12m cars from the road annually.
