Bachoco seeking opportunities for mergers, CEO says
Multi-protein company is looking to expand in Latin America and US, also in pork and beef
Mexico-based Bachoco is looking at a number of opportunities in South America and the United States to carry out mergers and acquisitions, Bachoco CEO Rodolfo Ramos said. The pursuit of acquisitions is a result of having received positive financial results in the last quarter of fiscal year 2014, according to the Infosel website.
While participating in a conference with analysts, Ramos stressed that in general the company will continue to look for good opportunities in Latin America, as well as in the United States, where its subsidiary OK Foods is located. Moreover, the Bachoco CEO further said that the main strategy of this multi-protein company remains to organically grow its operations, especially in the chicken and egg sectors. However, he added that despite this, the company is searching for merger and acquisition opportunities in other animal protein segments, such as pork and beef.
Analysts foresee that for the first quarter of 2015, the company will profit in sales as a result of the increase in the price of eggs that have recently occurred in Mexico. Earnings before interest, taxes, depreciation and amortization (EBITDA) of Bachoco in 2014 totaled about MXN6.2 billion (US$410 million) with an EBITDA margin of 14.9 percent.