The American market for meat industry is vastly expanding because of the rising demand for meat-based products. As such, OSI Group has taken advantage of the available market niche by actively expanding its portfolio of services as well as storage warehouse in Chicago. The warehouse belonged to Tyson Foods and as of now, it seats on 20,000 square feet alongside the fact that it is conveniently situated around OSI Group. The acquisition has allowed OSI Group to expand its operations into the growing meat industry.
Why the Acquisition?
OSI Group is vastly receiving surplus demand from its clients. Because of the rapid pace of transition in addition to the extra space, it has become possible for the company to bridge the gap between demand and supply. As illustrated by the senior executive of OSI’s North America unit Mr. Kevin Scott, the team was elated by its new acquisition.
Details of the Acquisition
Initially, Tyson Food was used in the preparation of meat-based products. However, in 2015, the company announced its intention to shut down instantly. The spokesperson confirmed that plans were underway to shut down the second plant in Jefferson as well as Wisconsin so that Tyson Food could divert focus to improved productivity. Perhaps the acquisition of Tyson Food by OSI Group is going to transform the manner in which the business is operated. Better yet, the acquisition is giving its people the opportunity to better their livelihoods. As usual, OSI Group withheld details of the acquisition. Nevertheless it is expected to impact on the revenue of the company.
The Baho Food Acquisition
Proceeding with its quest to expand its business portfolio, OSI Group invested in Baho Food. The Dutch-based manufacturer of snacks, deli meats as well as convenience foods handed over a controlling stake that provides food for service companies to OSI Group. Similarly, the financial details of the company were withheld.
Benefits of the Purchase
The acquisition of Baho Food gives OSI Group Europe an opportunity to expand its market share by increasing visibility in the continent. Further into the acquisition, David McDonald and Sheldon Lavin stated that the company has sufficient resources to sustain its consumers. Other than that, Baho Food will help increase the production capacity of company.
Undoubtedly, the overriding reason for OSI Group’s acquisition of other manufacturing facilities is appended to its quest to expand its services to different continents.
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