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Tyson Foods buys 40% of Grupo Vibra's foods division

Tyson Foods Inc. said Aug. 30 that it agreed to acquire 40% of the foods division of Brazilian poultry company Vibra Agroindustrial SA, giving the U.S. packaged meat producer access to poultry supplies in Brazil.

Grupo Vibra produces and commercializes chicken protein under brands Nat and Avia, and is present in more than 50 countries. It employs more than 4,000 people and runs 18 production sites with facilities such as hatcheries, laboratories, farms, feed factories and slaughterhouses.

Financial terms of the deal were not disclosed and the transaction is subject to approval by Brazilian regulators.

The move is part of Tyson Foods' strategy "to develop a more flexible supply chain and mitigate the volatility of our previous model, which relied primarily on U.S. exports," Tyson Foods' international president and chief administration officer, Donnie King, said in a statement.

The company projects that nearly 98% of protein consumption over the next five years will happen outside the U.S. "That's why we're growing our business outside the U.S.," King added.

The deal follows Tyson Foods' $2.16 billion acquisition of meat supplier Keystone Foods LLC from Brazil's Marfrig Global Foods SA. Keystone Foods operates in China, South Korea, Malaysia, Thailand and Australia. It also runs the poultry business of another Brazilian meatpacker, BRF SA, in Thailand and Europe.