Extensive Mergers of OSI Industries by David McDonald

Having been founded in the year 1909 by the Otto Kolschowsky family, OSI Food Solutions of industries has grown beyond bounds to become the market leader it is today. It was initially a small butcher shop combined with a meat market in Chicago that was named Otto & Sons. OSI Industries currently dominates many food markets in several regions around the world. Over the years, the company has over 65 mergers with other food giants around the world.

As an experienced manager and investor in the food industry, David McDonald has been at the forefront to initiate more mergers and acquisitions in a bid to improve its productions.

Being in the food production industry for quite a while now, David McDonald has been instrumental in pushing for OSI’s group global success and growth. He has always been very strategic about all mergers and acquisitions the company is doing. An example of proper and strategic mergers is during the acquisition of Baho. Baho is a Netherlands based company that has been supplying the Dutch and Germans with food for over 60 years. This acquisition has been very important in venturing into the European market.

OSI Group has entered into a contract with McDonald’s about the supply of beef, poultry and bacon products. This contract has lasted a century now. As such, anytime McDonald’s opens a new food outlet in a new market in the world, OSI comes in quick to establish a food production facility in the new market too. This factor has seen the two companies grow hand in hand to become the entities they are in the present day.

OSI group has been very a keen on green innovations. This initiative saw the company have their efforts recognized by the British Council. There are other prestigious awards that OSI Group has won due to their commitment to continue serving the world with quality food products.

About two years ago -2016, OSI group acquired Tyson production facility, a deal valued at about $7.4 million. The facility is located in Chicago and serves as a storage space. It is a giant facility measuring about 200,000 square feet. Part of the facility has been revamped to start food productions. This is an integral part towards the growth of OSI industries considering that they are headquartered in Chicago.

In the year 2016 also, the company also merged with Flagship Foods, a European company dealing a supply of poultry meat. OSI industries now boast a considerable market in the European Industry.

From the Start, OSI Group Has Used Technology To Grow

OSI Group, one of the world’s leading food providers, started as a small, family-run butcher shop on the west side of Chicago. Founder Otto Kolschowsky opened the shop in 1909, just two years after immigrating to the United States from Germany. The business was successful and within a decade expanded into wholesale. In 1928, Kolschowsky’s business was rebranded as Otto & Sons. Business remained stable and successful for many years to follow.

Following World War II, the American economy began to grow. During this time, Otto & Sons formed a business deal that may very well be a key factor in the success of OSI Group to this day. Otto & Sons made an agreement with Ray Kroc, owner of the first McDonald’s, to supply ground beef to the restaurant.

With the rapid expansion of the McDonald’s franchise, Otto & Sons began focusing mainly on supplying beef to these restaurants. A major part of the responsibility of Otto & Sons was to be able to provide each McDonald’s restaurant with a consistent and affordable product. The invention of the flash freezing process allowed Otto & Sons to do this, leading to them becoming one of only four core suppliers in the McDonald’s supply chain.

Because Otto & Sons was a supplier for small restaurants as well as the McDonald’s franchise, the company eventually split production and built a plant dedicated to production for McDonald’s alone.

Otto & Sons changed its name to OSI Industries in 1975. The company began expanding outside of the Chicago area, opening facilities across North American throughout the 1970s and 1980s. OSI followed McDonald’s into the international market, forming joint ventures with companies in Germany and Spain. OSI Group continued to expand internationally, forming joint ventures in a variety of countries in Europe, South America and Asia.

Today, OSI Group operates a global chain of processing plants for more than just meat. OSI also has acquisitions and joint ventures with manufacturers of processed meat, fresh produce, frozen foods, pizza and more.

As they did from the beginning, OSI Group still remains focused on innovation and technology. As consumers grow more conscious of what they’re eating, OSI focuses on creating the best products by using the most up-to-date technology in food safety and quality.

OSI has also won a number of awards for their focus on sustainability and the impact of food production on the environment.

 

OSI Group — The Operations Improvements

In a recent acquisition, OSI Group has dilated their operations to incorporate a bigger production mill in the European countries. They have purchased a brand new facility in Chicago. The small details surrounding the acquisition haven’t been revealed to the public; however, we can anticipate the spectrum of advancements to be wide. They will probably begin creating contracts with more American distributors. We can rightfully surmise that the corporate has profited by creating such an excellent purchase, and it is guessed that these acquisitions are a part of a bigger strategy to expand overall production. The OSI Group has been the planet’s leader in chicken production within the last century, and they hope to continue this reign. The factories they purchased ought to create an environment full of tough competition.

By getting the mill enlargement in Chicago, OSI Group has doubled its chicken production capability. The country of Brazil, as well as the country of Spain, are a couple of the world’s largest purveyors of chicken. It’s been calculated by census that for each person in the urban center there are two chickens consumed on a daily basis. This means that for every family in Brazil there should be an availability of at least 5 chickens per day. The amount has accrued from the level it was three years prior, and it shows signs that it’s still increasing.

OSI Food Solutions is hoping to enhance its chicken production capability so as to stay the pace with the growing range of families that are requesting chicken in European countries. The amount has been on the increase for over five years, and as poultry becomes a national delicacy, additional families can take part of the dietary changes. The impact of the demand for chicken is seen across the factories that OSI Group has designed. Their factories are outfitted with the latest technology. The assembly of chicken for consumption has doubled, and they are ramping up their factories to continue at this pace. The chickens that are created for consumption lead satisfactory lives, and are fed in clean enclosures to guard the purchasers from disease or illness. OSI Group takes the health of their animals as a heavy task. They investigate their production centers regularly, and they take their responsibility to shoppers terribly seriously. This is what has made OSI the number one provider of poultry throughout the countries of the world.

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