Tyson Foods has quietly sold its stake in alternative protein company Beyond Meat, which is expected to go public next week at a valuation north of $1 billion.
What's happening: Tyson had a 6.5% ownership stake in Beyond Meat when the company filed for its IPO last November, having invested a total of $23 million between 2016 and 2017 (via its Tyson Ventures arm). It was still listed on an April 15 amended filing, but not in a subsequent one this past Monday.
Multiple sources tell Axios that tensions had been rising between the two companies, particularly after Tyson CEO Noel White said in February that the poultry giant would develop its own plant-based protein products.
- Beyond Meat no longer wanted the Tyson Ventures rep in its board meetings, effectively trying to dis-invite him, despite Tyson's contractual observer rights.
- Part of the fear was competitive, as Tyson was partially drawn to the alt protein market by the adoption it had seen for Beyond Meat within the quick-serve and broader restaurant sector.
- Part was also that Tyson might try to interfere with potential M&A, although it's unclear exactly how it would have done so. We've also heard that at some point Tyson made at least an informal takeover approach, but was rebuffed.
- It's unclear if Beyond Meat asked Tyson to sell its stake, or simply made things so uncomfortable that Tyson decided to make the move on its own. The last thing a corporate venture group wants is to be viewed as competing with its portfolio companies.
- No word on the sale price or buyer, except there must have been multiple ones. There is no new 5% shareholder listed, nor do the existing ones have increased share counts.
Tyson provided Axios with the following statement:
Beyond Meat declined comment, via a spokesman.
