08/30/2019 | Press release | Distributed by Public on 08/30/2019 05:51
Buys a 40% stake in the foods division of the Brazilian poultry company
Montenegro, RS, Brazil and Springdale, Ark., USA - August 30, 2019 - As part of its global growth strategy, Tyson Foods, Inc. (NYSE: TSN) has reached an agreement to invest in the foods division of Grupo Vibra ('Vibra Foods'), a Brazilian producer and exporter of poultry products. Once completed, the deal will give Tyson Foods more flexibility in serving customers in key global markets. Terms of the agreement were not disclosed, and the transaction is still subject to approval by Brazilian regulators.
'This investment will enable us to access poultry supplies in Brazil to meet the growing needs of Brazilian customers and of priority demand markets in Asia, Europe and the Middle East,' said Donnie King, group president, international & chief administration officer for Tyson Foods. 'It's part of our strategy to develop a more flexible supply chain and mitigate the volatility of our previous model, which relied primarily on U.S. exports.'
Since last year, Tyson Foods has expanded its global presence through the acquisition of Keystone Foods, which includes operations in China, South Korea, Malaysia, Thailand and Australia, and BRF's poultry businesses in Thailand and Europe. Grupo Vibra currently serves customers in Brazil as well as more than 50 countries around the world.
'This agreement is the result of the mutual trust between our two companies and the goal of both companies to expand globally,' said Flavio Sergio Wallauer, chairman of the board for Grupo Vibra. 'We also both believe in the importance of constantly adding value to our products. For us, this includes continuing to grow, innovate and strengthen the position of our brands, Nat and Avia.'
Over the next five years, it is estimated that nearly 98 percent of protein consumption growth will happen outside the U.S. 'That's why we're growing our business outside the U.S.,' said King. 'As the world population continues to grow, Tyson will grow with it.'
Tyson Foods currently generates $7 billion in international sales annually. This includes $5 billion in U.S. export sales and about $2 billion in in-country revenues.
'Tyson will add know-how and new business opportunities to speed up our growth,' said Gerson Luís Müller, CEO of Grupo Vibra. 'This partnership will be important to further develop our businesses in Brazil and foreign markets, granting access to new technologies and investments mainly in R&D. We will capitalize on a global distribution network to reach new markets. We trust that this agreement will strongly contribute to improve the quality of our services, adding new products to our portfolio offered to clients and consumers.' As part of the agreement, Grupo Vibra will spin-off its genetics multiplication business, Agrogen, into a separate company.
About Grupo Vibra
Grupo Vibra is one of the leading Brazilian Poultry producers, with more than 50 years of experience in the business. Vibra operates in the production and commercialization of chicken protein with the brands Nat and Avia. Its facilities include hatcheries, laboratories, farms, feed factories and slaughterhouses, serving the Brazilian market and more than 50 countries around the world. It is headquartered in Montenegro, South of Brazil, having operations in Paraná and Minas Gerais states, as well as a business unit in Dubai. With 18 production units, more than 4,000 employees, Vibra has a network of about 700 integrated producer families. In 2018 the company inaugurated the Vibra Innovation Center (CIV) in Montenegro, considered the first product research and development center of its segment in the South region of Brazil. Visit www.vibra.com.br and www.somosnat.com.br.
About Tyson Foods
Tyson Foods, Inc. (NYSE: TSN) is one of the world's largest food companies and a recognized leader in protein. Founded in 1935 by John W. Tyson and grown under three generations of family leadership, the company has a broad portfolio of products and brands like Tyson®, Jimmy Dean®, Hillshire Farm®, Ball Park®, Wright®, Aidells®, ibp® and State Fair®. Tyson Foods innovates continually to make protein more sustainable, tailor food for everywhere it's available and raise the world's expectations for how much good food can do. Headquartered in Springdale, Arkansas, the company had 121,000 team members at September 29, 2018. Through its Core Values, Tyson Foods strives to operate with integrity, create value for its shareholders, customers, communities and team members and serve as a steward of the animals, land and environment entrusted to it. Visit www.tysonfoods.com.