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