Source: Rita Jane Gabbett, MEATINGPLACE, 5/15/18



Subsidiaries of Tyson Foods have agreed to buy the poultry rendering and blending assets of American Proteins and AMPRO Products, the companies announced.

The acquisition is expected to enable Tyson Foods 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. The agreement is subject to customary closing conditions, including regulatory approval.

The purchase price is approximately $850 million. Over the next 12 months, the business is expected to generate adjusted net sales of more than $550 million. Tyson expects to realize synergies over time driven by manufacturing efficiencies, mix optimization and distribution network consolidation.

The acquisition includes four rendering plants located in Georgia and Alabama and 13 blending facilities located throughout Southeastern and Midwestern states. The facilities are expected to provide additional capacity to Tyson’s current animal byproducts business. Approximately 700 people work for American Proteins and most are expected to become Tyson Foods team members.

“Rendering plays a key role in growing our business and helping us deliver on our sustainability goals,” said Tom Hayes, president and CEO. “Through this important business, no part of the animal goes to waste, and we can recycle valuable ingredients into feed for pets and aquaculture.”

“This acquisition is a great complement to our existing business, gives us the ability to render raw materials in a region we don’t currently serve, and better positions us to meet the competitive, fast-growing national and global demand for animal protein,” said Doug Ramsey, group president of poultry for Tyson Foods.

Rendering is 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 U.S. and Canada is equivalent to removing more than 12 million cars from the road annually.

Tyson Foods recently announced its goal of reducing greenhouse gas emissions 30 percent by 2030.
American Proteins was founded by Leland Bagwell in 1949 who subsequently turned over the management of the company to his son Tommy Bagwell in 1972.

The company has serviced the poultry industry from its plants in Georgia and Alabama and supplies feed ingredients for pets and farm animals throughout the world through its subsidiary AMPRO Products providing custom blended protein feed products.

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