SPRINGDALE, Ark. — Tyson Foods, Inc. has agreed to acquire the poultry rendering and blending assets of Cumming, Ga.-based American Proteins, Inc. and AMPRO Products, Inc. for a purchase price of approximately $850 million.

The transaction would enable Tyson Foods to recycle more animal products for feed, pet food and aquaculture and expand its presence in the animal feed ingredient business. The acquisition includes 4 rendering plants in Georgia and Alabama and 13 blending facilities located throughout Southeastern and Midwestern states. The facilities would add capacity to Tyson Foods' current animal byproducts business, and approximately 700 employees of American Proteins would join Tyson Foods.

“Rendering plays a key role in growing our business and helping us deliver on our sustainability goals,” said Tom Hayes, president and chief executive officer 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.”

The agreement remains subject to customary closing conditions, including regulatory approval. Over the next 12 months, the business is expected to generate adjusted net sales of more than $550 million. Tyson Foods said it expects to realize synergies driven by manufacturing efficiencies, mix optimization and distribution network consolidation.

“This acquisition ... better positions us to meet the competitive, fast-growing national and global demand for animal protein.” — Doug Ramsey, Tyson Foods 

“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. “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. Investing in this part of our business is an investment in the future sustainability of our company.”

Tyson Foods recently announced a goal to reduce greenhouse gas emissions 30% by 2030. Rendering's contribution to carbon emission reduction in the United States and Canada is equivalent to removing more than 12 million cars from the road each year, according to the National Renderers Association.

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