After recent speculation that Tyson Foods was invested in the purchase of Keystone Foods from Marfrig Global Foods, the dust has settled, and the two have come to a definitive agreement for the acquisition. Tyson will purchase the West Chester, Pennsylvania-based global foodservice industry powerhouse for $2.16 billion in cash, as it endeavors to strengthen its stance and expansion efforts for its value-added protein capabilities.
“Keystone is a leading global protein company and will be a great addition to Tyson Foods,” said Tom Hayes, President and CEO of Tyson Foods. “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. We look forward to serving customers with these additional capabilities and to welcoming Keystone’s dedicated team members to the Tyson Foods family.”
The acquisition includes Alabama, Georgia, Kentucky, North Carolina, Pennsylvania, and Wisconsin processing plants, as well as an innovation center. Further, there are eight plants and three innovation centers in China, South Korea, Malaysia, Thailand, and Australia.
Keystone supplies chicken, beef, fish, and pork to some top quick-service restaurant chains and retail and convenience store channels, according to a press release. Value-added products that Keystone supplies include chicken nuggets, wings, and tenders; beef patties; and breaded fish fillets. The acquired company employs about 100,000 people and has generated an annual revenue of $2.5 billion and adjusted EBITDA of $211 million in the last 12 months, ending June 30th, excluding non-controlling interest and other adjustments.
The acquisition is expected to go close by mid-2019, subject to customary closing conditions, and regulatory approvals.
The release expresses that Morgan Stanley & Co LLC is the exclusive financial advisor for Tyson on the acquisition, and Davis Polk & Wardwell LLP is its legal counsel.
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