Tyson Foods Inc. of Springdale said Friday that it will buy a 40 percent stake in the the foods division of Grupo Vibra, a Brazilian producer and exporter of poultry products.
Financial terms of the deal were not disclosed. Tyson said the deal for the stake in Grupo Vibra, or "Vibra Foods," will give it "more flexibility in serving customers in key global markets." The deal awaits 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," Donnie King, group president of international and chief administration officer for Tyson Foods said in a news release. "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."
Grupo Vibra serves customers in Brazil and more than 50 countries other around the world. It's the latest acquisition to expand the publicly traded (NYSE: TSN) meat processor's global presence.
Last year, it bought the Keystone Foods business from Marfrig Global Foods of São Paulo, Brazil, for more than $2 billion in cash. Keystone has operations in China, South Korea, Malaysia, Thailand and Australia. It also purchased the Thai and European operations of BRF S.A. for $340 million.
In a news release, Tyson said 98 percent of protein consumption growth will happen outside the United States.
"That's why we're growing our business outside the U.S.," King said. "As the world population continues to grow, Tyson will grow with it."
Tyson said it generates $7 billion in international sales annually, including $5 billion in U.S. export sales and about $2 billion in in-country revenue.