Cargill this week announced that it has formed a joint venture with Australia's second-largest beef processor and exporter, Teys Bros.
The 50-50 joint venture will include both companies' Australian beef processing and cattle feeding businesses, as well as Teys' tannery and other Teys facilities. Board representation will be equal, and the company will continue to be run by Teys' family members. Financial details weren't disclosed.
Cargill is contributing two beef slaughterhouses and processing plants to the joint venture, while Teys is contributing four. Both companies will contribute a cattle feedlot. The proposed joint venture is subject to regulatory approvals.
The 65-year old Teys beef processing firm has annual sales of about $1.3 billion. Minnetonka-based Cargill had $107 billion in revenue in its most recent fiscal year.
This is the second significant acquisition Cargill has made in Australia in the past six months. In December, the company said it would buy AWB, an Australian grain handling operation, from Agrium Inc. That deal, valued at $800 million, closed Wednesday.
Cargill employed 1,900 in Australia before the two deals. Its businesses there also include flour milling and oilseed crushing.
Mike Hughlett • 612-673-7003
