U.S. company buys strategic stake in Tanmiah poultry subsidiaries; deal to accelerate growth
As part of efforts to meet growing global demand for protein, US-based Tyson Foods, Inc. (NYSE: TSN) and Saudi-based Tanmiah Food Company (“Tanmiah” or the “Company”, 2281 on the Saudi Exchange) have entered into a strategic partnership.
Tyson Foods is one of the world’s leading food companies and a recognized leader in protein while Tanmiah is a provider of fresh and value-added poultry and other meat products, animal feed and health products and a foods brand franchise operator.
Through the agreement, Tyson Foods will acquire a 15% equity stake in Tanmiah subsidiary Agriculture Development Company (ADC) and a 60% equity stake in Supreme Foods Processing Company. The transaction is still subject to approval by KSA regulators.
ADC is a fully integrated poultry company that produces broiler chickens and operates hatcheries and feed mills. It sells fresh poultry under the Tanmiah brand to retailers and food service customers. Supreme Foods produces a variety of value-added and cooked chicken and beef products with a distribution network spread across the Middle East, including Saudi Arabia, Kuwait, Bahrain, UAE, Oman, Lebanon, and Jordan among others.
“This investment will enable us to access poultry supplies in Saudi Arabia to meet the growing demand for protein in the Middle East and other markets,” said Chris Langholz, president of International for Tyson Foods. “Expansion into international markets is a key part of our strategic growth plan and we’re pleased to better serve customers in this region.”
Original source can be found here.
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