Bachoco, Mexico's leading producer and processor of poultry and other food products, has reached an agreement to acquire from American Foods Group a fully-cooked poultry facility located in Oklahoma City. The company expects to close the deal in February, 2016 through its OK Foods subsidiary, which is located in Arkansas and Oklahoma.
The transaction is valued at approximately $11 million dollars. This acquisition comprises all the assets located in Oklahoma City, with a capacity to produce over 700,000 pounds per week, of fully cooked chicken products.
Rodolfo Ramos, Bachoco's CEO, stated: "This is a strategic acquisition for our company as we continue to streamline and improve the product mix in our U.S. operations. This means that we will be able to integrate other further processed customers into our sales mix and move out from the commodity market. This strategy is in line with our growth plans in the U.S."
The company expects to close the deal in February, 2016 through OK Foods subsidiary located in Arkansas and Oklahoma.
Bachoco, which is among the top six worldwide chicken processors, holds nearly 40 percent of the market share in Mexico. It sold roughly 1.5 million metric tons of poultry products in 2014, according to the WATTAgNet Top Poultry Companies Database. OK Foods reported 14.7 million pounds of ready to cook chicken production on a weekly basis in 2014.