Saudi-based Tanmiah Food Company has entered into a strategic partnership agreement with US-based Tyson Foods as part of sustained efforts to meet the growing global demand for protein.
The parties to the agreement are Tyson Foods and Agricultural Development Company (ADC) and Supreme Foods Processing Company (SFPC), Tanmiah’s wholly-owned subsidiaries.
As part of the agreement, Tyson Foods and Tanmiah have committed to invest substantially to expand the processing capacities of SFPC. This investment is aligned with Tanmiah’s strategic expansion agenda and will result in doubling the company’s production capacity in value-added products.
Both companies, through a 50-50 joint venture, will also explore opportunities in the fast-growing global Halal market. Tyson Foods will own a 15 percent equity stake in ADC and a 60 percent equity stake in SFPC through a deal valued at $70 million. The transaction will be subject to approval by the General Authority for Competition in Saudi Arabia and other government entities.
Through this partnership, Tanmiah will continue to support the growth of Saudi Halal products by bringing world-class sector expertise to the Kingdom. Through its expansion, Tanmiah will also create a number of job opportunities in the local Saudi market.
“The strategic partnership is expected to accelerate Tyson Foods’ and Tanmiah’s growth and generate significant value in the short and long term. This will be primarily achieved through further expansion across the value chain, and enhanced product, customer, and geographical diversification, as well as improvement of production and other operational processes. The agreement will also see Tyson Foods and Tanmiah unlock long-term opportunities in the fast-growing Halal food market.”
Mr. Zulfiqar Hamadani, CEO of Tanmiah said that “This partnership marks a significant milestone in Tanmiah’s journey, through demonstrating our commitment to our pioneering role in supporting Saudi Arabia’s food security and self-sufficiency goals. During this new phase, we will continue to work together with Tyson Foods, whose commitment to animal welfare, food safety, sustainability, and quality, are very much in line with our own business model and sustainability framework. This transaction will not only reinforce our positioning in the regional market but will also enable us to expand our global footprint through leveraging Tyson Foods’ long-standing relationships with customers worldwide.”