Tyson Foods, Inc., Springdale, Ark., announced plans to acquire the poultry rendering and blending assets of American Proteins, Inc., Cumming, Ga., and AMPRO Products, Inc., Gainesville, Ga., for approximately $850 million. The acquisition will enable Tyson Foods to recycle more animal products for feed and aquaculture, among other things, and expand its presence in the animal feed ingredient business.

“Rendering plays a key role in growing our business and helping us deliver on our sustainability goals,” says Tom Hayes, president and CEO of Tyson Foods. “Through this important business, no part of the animal goes to waste, and we can recycle valuable ingredients into feed for pets and aquaculture.”

Rendering is an environmentally friendlier way to keep animal products out of landfills and potentially reduce greenhouse gas emissions.

“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,” says Doug Ramsey, group president of poultry for Tyson Foods.

The acquisition includes four rendering plants in Georgia and Alabama and 13 blending facilities located throughout Southeastern and Midwestern states. The facilities are expected to provide additional capacity to Tyson’s current animal byproducts business. Most of American Proteins’ 700 employees will become Tyson Foods team members.

“We value and appreciate our 700-plus employees as well as the relationships we have with our suppliers and customers, and are confident that after the transaction closes, the Tyson team will offer them the same commitment to service and quality as provided by American Proteins,” adds Mark Ham, president and CEO of American Proteins.

Tyson Foods expects to realize synergies over time driven by manufacturing efficiencies, mix optimization and distribution network consolidation. 

“American Proteins’ management team has built a great business, and the production teams have done a wonderful job making animal feed ingredients for years. We admire the company and believe this will be a good cultural fit,” Ramsey says. “Investing in this part of our business is an investment in the future sustainability of our company.”