Tyson Foods Inc. of Springdale said Tuesday that it will pay about $850 million for the poultry rendering and blending assets of American Proteins Inc. of Cumming, Georgia, and its subsidiary, AMPRO Products Inc.
In a news release, the publicly traded meat processor said 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 deal is subject to regulatory approval. The company said it expects the business to generate adjusted net sales of more than $550 million over the next 12 months.
“Rendering plays a key role in growing our business and helping us deliver on our sustainability goals,” Tyson Foods President and CEO Tom Hayes said. “Through this important business, no part of the animal goes to waste, and we can recycle valuable ingredients into feed for pets and aquaculture.”
American Proteins was founded in 1949. It has more than 700 employees and plants in Georgia and Alabama. Its subsidiary, AMPRO Products, supplies feed ingredients for pets and farm animals.
The acquisition includes the four rendering plants in Georgia and Alabama and 13 blending facilities in the Southeast and Midwest. Tyson expects the operation to provide additional capacity to its animal byproducts business.
“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.
The company said rendering is “an environmentally friendlier way to keep animal products out of landfills and potentially reduce greenhouse gas emissions.” The company said the move fits with its goal to cut greenhouse gas emissions 30 percent by 2030. The company has also said it would support improved environmental practices on 2 million acres of corn by the end of 2020.
Sign up for Daily E-news
