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Tyson Foods Acquires 40% of Vibra Group’s Food Division

Aug, 30, 2019 Posted by Sylvia Schandert

Week 201936

As part of its global growth strategy, Tyson Foods has reached an agreement to invest in the food division of Vibra Group, a Brazilian producer and exporter of poultry products. According to the American multinational, once completed, the deal will give Tyson more flexibility in serving customers in key global markets. The terms of the agreement were not disclosed and the transaction is still subject to approval by Brazilian regulatory agencies.

“This investment will allow us to access the poultry supply in Brazil to meet the growing needs of Brazilian customers and priority demand markets in Asia, Europe, and the Middle East,” said Donnie King, group president, director of international administration, and head of Tyson Foods. “It is part of our strategy to develop a more flexible supply chain and mitigate the volatility of our previous model, which was mainly based on US exports.”

Since last year, Tyson Foods has expanded its global presence through the acquisition of Keystone Foods, which includes operations in China, South Korea, Malaysia, Thailand, and Australia, and BRF’s poultry business in Thailand and Europe. Vibra Group currently serves customers in Brazil and more than 50 countries around the world.

“This agreement is the result of mutual trust between our two companies and the goal of both of them to expand globally,” said Flavio Sergio Wallauer, chairman of the Vibra Group board. “We also believe in the importance of constantly adding value to our products. For us, this includes continuing to grow, innovating, and strengthening the position of our brands Nat and Avia.”

Over the next five years, it is estimated that almost 98% of protein consumption growth will occur outside the US. “That’s why we are expanding our business outside the US,” said King. “As the world’s population continues to grow, Tyson grows with it.”

Tyson Foods currently generates US$7bn in international sales annually. This includes US$5bn in US export sales and about US$2bn in US revenues.

“Tyson will add know-how and new business opportunities to accelerate our growth,” said Gerson Luís Müller, CEO of Vibra Group. “This partnership will be important to further develop our business in Brazil and abroad, ensuring access to new technologies and investments mainly in R&D. We will capitalize on a global distribution network to reach new markets. We believe this agreement will greatly contribute to improving the quality of our services by adding new products to our portfolio offered to customers and consumers.”

As part of the agreement, the Vibra Group will transform its genetic multiplication business, Agrogen, into a separate company.

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