Tyson Foods to acquire BRF’s Thai and European operations

US-based meat producer Tyson Foods has signed a definitive agreement to acquire the Thai and European operations of Brazilian food company BRF for $340m.

Tyson Foods will acquire four processing facilities in Thailand, one processing facility in the Netherlands and one processing facility in the UK.

The acquisition is said to be in line with the company’s growth strategy to expand offerings of value-added protein in global markets.

Tyson Foods president and CEO Noel White said: “As noted when we acquired Keystone Foods on 30 November, we believe some of our biggest growth opportunities are in value-added foods and international markets.

“In addition to domestic benefits, the Keystone acquisition provided us with a scalable production platform in the Asian poultry market.

“The acquisition of these BRF facilities will help complement and strengthen our presence in Thailand, and provide new capabilities in Europe, enhancing our ability to serve growing global demand for value-added protein.”

The acquired poultry operations in Thailand include a feed mill, hatchery and breeder farms, as well as contract growing operations supplying live birds for the four poultry processing facilities, which are used for producing a wide range of fresh and frozen, value-added raw and fully-cooked poultry products.

Processing locations in the Netherlands and the UK are supported by in-house innovation capabilities for developing further-processed chicken products for retail and foodservice customers throughout Europe.

These products are sold under Grabits, Hot ‘N’ Kickin’Chicken, Speedy Pollo and the Sadia brands, in addition to key customer-owned brands.

Subject to customary closing conditions, including regulatory approvals, the deal is expected to close before the end of the company’s fiscal third quarter.

BofA Merrill Lynch is serving as exclusive financial adviser to Tyson Foods, and Clifford Chance is acting as its legal counsel for the transaction.

In June, Tyson Foods has expanded its organic food offerings with the acquisition of Tecumseh Poultry for an undisclosed sum.