US-based Tyson Foods and Saudi-based Tanmiah Food Company (“Tanmiah”) have entered into a strategic partnership agreement to accelerate growth in agrifood and poultry production capacity and to meet growing global protein demand. 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.
Through this partnership, Tanmiah will drive innovation across its supply chain by leveraging Tyson Foods’ global industry expertise, reinforcing its position in the regional agrifood market and its commitment to supporting the Kingdom’s food security goals.
Both companies, through a 50/50 joint venture, will also explore opportunities in the fast-growing global Halal market, and as per the agreement, Tyson Foods will own a 15% equity stake in Agricultural Development Corporation (ADC) and a 60% equity stake in Supreme Foods Processing Company (SFPC). The transaction will be subject to approval by the General Authority for Competition in the Kingdom of Saudi Arabia and other government entities.
Baker McKenzie has advised Saudi-listed Tanmiah Food Company in this transaction. The team was led by m&a partner Adnan Doha (picured) and senior associate Stephanie Samuell and included a team across the UAE and Saudi Arabia. The Saudi team comprised senior legal consultant Karim Nassar, associate Yousef Bugaighis, junior associate Rami Younes, associate Mustafa Rajab and senior associate Hessa AlAiban, who advised on Saudi corporate and regulatory matters, and senior legal consultant David Monnier and junior associate Marwan Othman, who advised on Saudi merger control matters. The UAE team included partner and head of corporate/m&a UAE Osama Audi, senior associate Marcos Spanos, associates Neil Williams and Jaanzeb Khan and corporate paralegal Razan Obeidat.
Ernst & Young Corporate Finance acted as financial advisor to Tanmiah and DLA Piper acted as legal counsel to Tyson Foods.