US Meat Processor Tyson Foods Acquires Keystone Foods For $2.16 Billion
US meat processor Tyson Foods has announced the acquisition of Keystone Foods for $2.16 billion.
Keystone is a major supplier in the fast food industry, supplying chicken for McDonald's.
Tyson Foods has reached agreement with Keystone parent company, Marfrig Global Foods, the second largest Brazilian food processing group, to buy the company for $2.16 billion in cash.
Commenting on the acquisition, Tom Hayes, CEO of Tyson Foods, said “This acquisition will expand our international presence and value-added production capabilities and help us deliver more value to our foodservice customers.
"Keystone provides a significant foundation for international growth with its in-country operations, sales and distribution network in high growth markets in the Asia Pacific region as well as exports to key markets in Europe, the Middle East and Africa.”
The acquisition includes a number of production facilities, such as six processing plants and an innovation centre in the US, with locations in Alabama, Georgia, Kentucky, North Carolina, Pennsylvania and Wisconsin, however it doesn't include a beef processing plant in Ohio. Abroad, the acquisition also includes eight plants and three innovation centres in China, South Korea, Malaysia, Thailand and Australia.
According to Reuters, the Brazilian group sold Keystone for twice the price it originally acquired the company in 2010 and is said to focusing on beef, with the Ohio-based beef patty plant not included in the deal said to generate a $300 million revenue each year for Marfrig, according to the CFO of the company.
Though it has yet to be approved by regulators, the transaction has already been approved by Tyson Foods’ board of directors and is expected to close by Q3 of FY19.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Matthieu Chassain. Click subscribe to sign up to ESM: European Supermarket Magazine.