Small and large businesses can reap the benefits of global expansion simultaneously. Especially when the development travels to overseas market, the company is set to gain more revenue than before. Just like with a new venture that penetrates the industry, the foreign expansion consumes time and other resources. Additionally, it requires careful planning and execution. Besides, these businesses need to be keen on cultural differences that a new business model. One company that has successfully ventured into global expansion is OSI Group. In 2016, this company built its rapport on the basis of acquiring food manufacturing plants.
OSI Group’s first purchase in that year was Tyson Foods, a facility based in Chicago and adjacent to OSI Plant. The short distance between fostered a smooth operation in the merger as it supports the continued expansion of the firm. Regarding this acquisition, the senior executive of OSI North America, Kevin Scott said that the new facility would give OSI Group an additional client base alongside the capacity to meet the ever-growing demands of the company. He also added that he was pleased by the additional production capacity.
Comments on Tyson Foods Acquisition
Although the senior executives of OSI Group withheld more details regarding the acquisition, the Tyson Foods representative admittedly stated that the company was an active operator of food division. In 2015, the facility was shut down based on the losses incurred by the company. During the acquisition, Tyson Foods transferred the entire workload to OSI Group.
In August 2016, OSI Group acquired Baho Food, a Dutch-based snack, meat as well as convenience food industries. Just like with the other contracts, the executives withheld the financial details of the acquisition. However, the conglomerate has a vast client base, especially in the European market. Regarding this acquisition, David McDonald, the serving president of OSI Group said that his company has sufficient resources to invest in global expansion.
Currently, Baho Food is the sole owner of Q Smart Life, Henri van Bilt and Frischwaren. These companies have processing plants in the Netherlands.
Last but not least, OSI Group acquired Flagship Europe in late 2016. The company manufactures pies, sauces, mayonnaise and dressings for the United Kingdom market. Initially, Flagship Europe purchased Calder Foods, a company that supplies mayonnaise, marinades, sandwich fillings and sauces. OSI Group is a universal food provider for meat-based products. The company partners with business-oriented firms to provide excellent services alongside enough supply to cater to demand.
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