Cargill is set to acquire full ownership of beef processor Teys Investments by buying out the remaining shares from family shareholders.
This strategic deal allows the US-based agri-food giant to take full control of Teys Investments via an unspecified wholly owned subsidiary. Importantly, this acquisition will also grant Cargill oversight of Teys Australia and Teys USA.
These units are “two of the primary operating companies which are currently jointly owned by Teys and Cargill,” according to a recent statement, which did not disclose financial terms.
Cargill and the Teys family have maintained a 50-50 joint venture since September 2011.
The Teys family, having established the company in 1946, believes it is now the right time to transition ownership to Cargill. The Australian company states that this ownership change ensures continuity for Teys’ employees, partners, and producers.
Teys executive chairman Brad Teys remarked: “Cargill has been instrumental in our transformation into a world-class food company. We are confident they are the best owner to grow the business into the future.”
Cargill’s executive vice-president Jon Nash stated: “As family-owned businesses, both Cargill and Teys share the same commitment to nourishing Australia and the rest of the world in a safe, responsible and sustainable way.”
The transaction is expected to close in the second half of this year, pending regulatory approvals and other customary conditions.
Cargill will appoint a new CEO for Teys “in due course” and collaborate with Brad Teys to support a seamless transition.
In a separate investment, Cargill is allocating around $90 million to enhance automation and introduce new technologies at its Fort Morgan, Colorado beef plant. This initiative is part of its Factory of the Future strategy, aimed at “improving operational efficiencies” and “increasing yields.”
Since 2021, Cargill has invested $24 million in technology upgrades at the facility. Among these innovations, the company will deploy its in-house CarVe system, a computer vision technology capable of measuring red meat yields in real time. This solution provides managers with “instant insights” and facilitates feedback to employees for optimizing cutting techniques.
“CarVe helps keep more protein in the food system that otherwise would be lost in the process,” the company explained.
In January, Cargill announced plans to shut a turkey-processing site in the US, indicating a strategic shift in operations.
Cargill will relocate “much of Springdale’s production” to other turkey-processing plants in Missouri and Virginia. Furthermore, in December, Cargill declared a plan to reduce its global workforce by 5%, amounting to approximately 8,000 jobs.