February 15, 2021
Tyson Foods to invest in Malaysian company's poultry business
Tyson Foods, Inc. and Malayan Flour Mills Berhad have announced a partnership in which Tyson Foods will invest in the Malaysia-based company's vertically integrated poultry business, which will add more supply flexibility for both companies, Tyson Foods announced on February 10.
The transaction is subject to approval by the shareholders of Malayan Flour Mills Berhad (MFM), amongst others.
"Once completed, the poultry deal will optimise our existing Malaysia business and expand MFM's poultry business," said Chris Langholz, international president of Tyson Foods. "This partnership will add more supply flexibility for both companies in serving halal-certified poultry to consumers and customers in the country and across priority export markets."
Tyson Foods Malaysia currently operates a plant and a innovation center. MFM's vertically integrated poultry business includes feed mills, hatcheries, farms and processing facilities.
"We are pleased to partner with Tyson Foods to expand MFM's long-established poultry business," said Teh Wee Chye, managing director for MFM. "Tyson Foods is one of the world's largest food production companies with a strong global manufacturing and distribution footprint.
"Malaysia is one of the key poultry markets in Southeast Asia, with a high per capita consumption of poultry. Together with Tyson Foods, we look forward to increasing our halal poultry product offerings in the country, especially in the further processed poultry segment, as well as exporting to demand markets with the help of Tyson Foods' global network."
Malaysia's halal industry market value is expected to reach US$147.4 billion by 2025, according to the Halal Industry Development Corporation (HDC). The country exports about US$9 billion worth of halal-certified products.
"Our global resources and robust innovation capabilities paired with MFM's more than 30 years of expertise as a leading poultry player in the country, enable both companies to make halal-certified products more readily available and affordable," said Tan Sun, president of Tyson Foods APAC.
MFM's gold standard in Halal certified poultry products complements Tyson Foods' Malaysian business, which is also recognised as a leader in the country's halal food industry.
In FY2020, Tyson Foods generated US$6 billion in international sales, which included US export sales.
Rabobank Singapore acted as the international financial advisor to MFM.