Tyson Foods has successfully completed the acquisition of Keystone Foods from Marfrig Global Foods, Tyson Foods announced on November 30. The purchase of Keystone -- a leading supplier of chicken, beef, fish and pork to the growing global foodservice industry -- aligns with Tyson Foods’ domestic and international growth strategy.
The deal, which was initially announced on August 20, closed following the necessary regulatory approvals. During its initial announcement, Tyson Foods stated that it would purchase Keystone Foods for $2.16 billion in cash.
“Our biggest growth opportunities are in value-added foods and international markets. Our acquisition of Keystone helps us achieve both,” said Noel White, president and CEO of Tyson Foods. “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.”
This acquisition involves eight plants and three innovation centers in China, South Korea, Malaysia, Thailand and Australia that will help meet growing international demand. Tyson Foods also is gaining an innovation center and six processing plants in the U.S. with locations in Alabama, Georgia, Kentucky, North Carolina, Pennsylvania and Wisconsin. Keystone supplies chicken, beef, fish and pork to some of the world’s leading quick-service restaurant chains, as well as retail and convenience store channels. Its value-added product portfolio includes such items as chicken nuggets, wings and tenders; beef patties; and breaded fish fillets.
“We’ll work to make the integration of Keystone as seamless as possible while maintaining high levels of service to our customers,” White said. “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.”
Largest broiler company in US growing
Tyson Foods is already the largest broiler company in the United States, and once the acquisition of Keystone Foods is finalized, it will further solidify Tyson Foods’ leading position. Tyson produced 174.8 million pounds of ready-to-cook chicken on a weekly basis in 2017. Keystone, the tenth largest broiler company in the U.S., processed 23.8 million pounds of ready-to-cook chicken on a weekly basis in 2017.
According to the 2017 figures, Tyson processed 20.6 million more pounds of ready-to-cook chicken weekly than its closest competitor Pilgrim’s Pride. The addition of Keystone Foods would extend Tyson’s lead to 44.4 million pounds per week, based off of 2017 statistics.