Tyson Foods Inc.’s venture capital arm, Tyson Ventures, has sold its stake in plant-based protein startup Beyond Meat, regulatory filings show.
The sale was first reported by Axios’ Pro Rata e-newsletter.
Tyson, of Springdale, had invested about $23 million in the company. It purchased a 5 percent stake for $15 million in 2016, then added another 1.5 percent stake later that year for about $8 million.
Financial terms of the sale weren’t available. In a statement, the meat processor said it was pleased with its investment and “the time is right to exit.”
“Beyond Meat provided an early opportunity for Tyson Ventures to invest in plant-based protein products that many consumers are seeking. We wish the leadership of Beyond Meat all the best,” the company said.
In its report, Axios noted that the sale comes ahead of Beyond Meat’s planned initial public offering next week. It reported the IPO could value the company at more than $1 billion.
It also said “multiple sources” reported “tensions” between the two companies, “particularly after Tyson CEO Noel White said in February that the poultry giant would develop its own plant-based protein products.”
In its statement, Tyson Foods noted its plans for its own plant-based products.
“Tyson Foods continues to be committed to providing alternative protein as a choice for consumers and recently announced the creation of a new business focused on combining our creativity, scale and resources to make great tasting protein alternatives more accessible for everyone,” the company said. “We plan to launch an alternative protein product soon with market testing anticipated this summer.”
Beyond Meat was the first high-profile investment by Tyson Ventures. Announced in October 2016, the deal was to give the company “exposure to a fast-growing segment of the protein market,” and it fit with Tyson’s goal of being a key global provider of protein of all kinds.
Beyond Meat products include plant-based hamburger patties and chicken strips and single-serve prepared meals.
Tyson Ventures has continued invested in other firms. Earlier this month, it invested in Clear Labs Inc. of Menlo Park, California, a food testing and safety company.
Sign up for Daily E-news
