Marfrig Global Foods has received binding offers as it seeks to sell its Keystone Foods subsidiary, the company announced in a notice to the market on its website.
The notice from Marfrig only contained two sentences, and information on how many or which companies submitted offers was not included. But the company did state that it will keep its shareholders and the market timely and adequately informed about the closure of this process.
Marfrig, headquartered in Brazil, announced in April its intentions to sell the Alabama-based Keystone Foods in an effort to concentrate more fully on its beef operations, as well as to leverage its acquisition of the majority of the shares of National Beef Packing Company.
In an earlier notice to the market, Marfrig stated that five companies had qualified to submit proposals. While neither Marfrig, nor the qualifying companies, ever confirmed the identities of any of those companies, an anonymous source claiming knowledge of the matter told Reuters that those five qualifying companies were Tyson Foods, George’s, Cargill – all based in the United States -- and Chinese companies Cofco Corp. and China Investment Corp.
Possible impact on Top Poultry Companies rankings
The acquisition could shake up the Top Poultry Company rankings, tracked on WATTAgNet.com and WATT PoultryUSA, depending on which company emerges as the buyer.
Keystone Foods is the tenth largest broiler company in the United States, having processed 23.8 million pounds of ready-to-cook chicken on a weekly basis in 2017.
Tyson Foods, which acquired Tecumseh Poultry in June and has stated that it will continue to consider more acquisitions, is presently the top-ranked poultry company, according to the database, and the acquisition of Keystone would help to solidify that position.
George’s, is one rung under Keystone Foods in the Top Poultry Companies rankings. It processed 22.59 million pounds of ready-to-cook chicken on a weekly basis in 2017. The combined 2017 production of George’s and Keystone Foods would leave the combined company ranked 8th, barring no other significant changes among the other top companies.
Cargill, while presently ranked as the third largest turkey company in the United States, is not listed among the top broiler companies.
