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Multi-generational Australia beef processing company Teys will pass fully into US ownership after Minnesota-based multinational Cargill reached a deal to acquire the remaining 50 per cent stake it does not already own for an undisclosed sum.
Brisbane-based Teys' operations date back more than 75 years, but its Teys Australia and Teys USA businesses have operated through a joint venture with Cargill since 2011 when James Packer's Consolidated Pastoral Holdings exited the company.
Documents previously lodged with the Australian Securities and Investments Commission (ASIC) show that Cargill Australia had more than $115 million worth of ordinary B class shares in Teys Australia, while Teys Investments held a similar amount of ordinary A class shares in the company.
A spokesperson for Teys declined to reveal the purchase price for the remaining shareholding or if it was comparable to or greater than $115 million.
Teys says the ownership provides continuity for the company's people, partners and producers, and will "ensure that it continues to serve as a leading provider of healthy, high-quality Australian beef products and a buyer of Australian livestock destined for local and international customers".
"My grandfather started this business more than 75 years ago with his brothers, and the family values of integrity, quality and honesty have stayed constant as we’ve evolved into the global food brand we are today," says Teys executive chairman Brad Teys.
"The Teys family is immensely proud to have grown our business into a premier provider of beef to our customers and Australian families.
"Cargill has been instrumental in our transformation into a world-class food company. We are confident they are the best owner to grow the business into the future.”
Jon Nash, executive vice president and leader of Cargill’s food enterprise business, says both family-owned businesses share the same commitment to "nourishing Australia and the rest of the world in a safe, responsible and sustainable way".
"We are grateful to the Teys family for this opportunity to continue working alongside Australian livestock producers, who are pivotal to the agricultural supply chain, and to assure the delivery of high-quality and nutritious beef to family dinner tables across the country and globe," Nash says.
Completion of the change of ownership is subject to certain customary conditions precedent, including applicable regulatory approvals, and is expected to complete in the second half of 2025.
Cargill says it will name a new CEO of Teys in due course and work closely with Brad Teys to ensure a seamless transition.
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