US-based food major Tyson Foods has closed the acquisition of global foodservice industry supplier Keystone Foods from Marfrig Global Foods for $2.16bn in cash.
The company announced the deal through a definitive agreement in August this year as part of its growth strategy and expansion of its value-added protein capabilities.
Keystone supplies chicken, beef, fish and pork to foodservice companies such as quick-service restaurant chains, in addition to retail and convenience stores.
The Pennsylvania-based firm also offers value-added products such as wings and tenders, chicken nuggets, beef patties and breaded fish fillets.
Tyson Foods president and CEO Noel White said: “Our biggest growth opportunities are in value-added foods and international markets. Our acquisition of Keystone helps us achieve both.
“The addition of Keystone’s team, industry expertise and international operations strengthens our capabilities. I’m pleased to welcome our newest team members to the Tyson Foods family.”
The transaction covers eight plants and three innovation centres across China, South Korea, Malaysia, Thailand and Australia, as well as six food processing plants and an innovation centre in Alabama, Georgia, Kentucky, North Carolina, Pennsylvania and Wisconsin.
However, this deal does not include Keystone’s beef patty processing plant in Ohio.
White added: “We’ll work to make the integration of Keystone as seamless as possible while maintaining high levels of service to our customers.
“An Integration Management Office has been formed with leaders from both companies who will lead us through the process. I look forward to all we can accomplish together as one Tyson Foods.”
Tyson Foods funded the transaction through a combination of existing liquidity and new debt.