Tyson Foods acquisition of Keystone Foods : US meat processing giant Tyson Foods has agreed to acquire global frozen meat products supplier Keystone Foods from Brazilian food processing company Marfrig Global Foods for $2.16 billion in an all-cash deal.

Tyson Foods acquisition of Keystone Foods is expected to help the former expand its value-added protein capabilities globally.

Keystone Foods, which is headquartered in West Chester, Pennsylvania, supplies chicken, beef, fish and pork to quick-service restaurant chains, retail and convenience stores. The portfolio of the frozen meat products supplier includes chicken nuggets, chicken wings, chicken tenders, beef patties and breaded fish fillets.

Tyson Foods Acquisition of Keystone Foods

Tyson Foods acquisition of Keystone Foods will include six meat processing plants and a food innovation center in the US with locations across Alabama, Pennsylvania, Georgia, Kentucky, Wisconsin and North Carolina. Outside the US, Tyson Foods will add Keystone Foods’ eight meat processing plants as well as three innovation centers in China, Australia, South Korea, Malaysia and Thailand.

The deal will exclude Keystone Foods’ beef patty processing facility in Ohio.

Keystone Foods, which has a workforce of around 11,000 people, registered annual revenue of $2.5 billion in the last 12 months ending June 30, 2018. Out of that, the frozen meat products supplier generated close to 65% from its US meat processing plants and the remaining 35% from its Asia Pacific meat processing plants.

Commenting on Tyson Foods acquisition of Keystone Foods, Tom Hayes – president and CEO of Tyson Foods, 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.”

Tyson Foods acquisition of Keystone Foods, which will be subject to customary closing conditions, including regulatory approvals, is anticipated to be wrapped up in mid-fiscal 2019.

In another deal this month, Tyson Foods agreed to sell its pizza crust business -TNT Crust to an affiliate of Peak Rock Capital for an undisclosed price. The Peak Rock Capital acquisition of TNT Crust can be read at the link provided.

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  Brazil, Frozen meat products, Keystone Foods, Marfrig Global Foods, Tom Hayes, Tyson Foods, USA