Tyson Foods said Friday that it had reached an agreement to buy 40% of the Vibra Group, a Brazilian poultry producer and exporter, as part of the global growth strategy of the American animal protein giant.
The Vibra Group, with operations in Paraná and Minas Gerais, and a business unit in Dubai, serves clients in Brazil and in more than 50 countries.
“Once completed, the agreement will give Tyson Foods more flexibility to serve customers in key global markets,” the company said in a statement.
Negotiations with the Vibra Group took place after Tyson closed the purchase of foreign assets of Brazilian companies Marfrig and BRF last year.
The agreement with Vibra guarantees the operations of Tyson in Brazil, the largest exporter of chicken meat in the world.
“The big point is that Tyson can’t be out. Brazil is very competitive, ”said an industry source, who asked not to be identified.
The terms of the agreement with Vibra were not disclosed, and the transaction is still subject to the approval of Brazilian regulators.
“This investment will allow us to access the supply of poultry in Brazil to meet the growing needs of Brazilian customers and priority demand markets in Asia, Europe and the Middle East,” said Tyson President Donnie King.
According to King, the measure is part of the strategy of developing a “more flexible supply chain and mitigating the volatility of our previous model, which was based primarily on US exports.”
Since last year, Tyson Foods has expanded its global presence by acquiring the assets of Keystone Foods of Brazilian Marfrig, which included operations in China, South Korea, Malaysia, Thailand and Australia, as well as the BRF poultry business in Thailand and Europe.
With 18 production sites, more than 4,000 employees, Vibra has a network of around 700 integrated producers, according to Tyson.
Vibra facilities, which operate in the production and marketing of Nat and Avia brand chicken proteins, include hatcheries, laboratories, farms, food factories and refrigerators.