Tyson Foods signs agreement to buy Keystone Foods for $2.16bn

US-based Tyson Foods has signed a definitive agreement to acquire Keystone Foods from Marfrig Global Foods for $2.16bn in an all-cash transaction.

The acquisition is said to be part of Tyson Foods’ growth strategy and will expand its value-added protein capabilities.

Under the terms of the agreement, Tyson Foods will acquire six processing plants and an innovation centre in the US, with locations in Alabama, Georgia, Kentucky, North Carolina, Pennsylvania, and Wisconsin.

The deal also covers eight plants and three innovation centres in China, South Korea, Malaysia, Thailand, and Australia. It excludes the beef patty processing plant in Ohio, US.

Tyson Foods president and CEO Tom Hayes said: “Keystone is a leading global protein company and will be a great addition to 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.”

Subject to customary closing conditions, including regulatory approvals, the deal is expected to close by mid-next year.

Keystone supplies chicken, beef, fish, and pork to quick-service restaurant chains across the globe, as well as retail and convenience store channels.

The company’s product portfolio includes chicken nuggets, wings, and tenders, in addition to beef patties and breaded fish fillets.

In the last 12 months ending 30 June 2018, Keystone generated annual revenue of $2.5bn and adjusted EBITDA of $211m.

During the same period, about 65% of the company’s revenue was generated from US-based production and the remaining 35% from its plants in the Asia Pacific.