Industrias Bachoco has closed on its acquisition of a 54.8% stake in Sonora Agropecuaria S.A. (SASA), a swine processing and distribution company with operations in the Mexican states of Sonora and Jalisco.
Bachoco first announced its intent to acquire a majority interest in the company in late 2019. Now that the transaction has been approved by the Mexican antitrust authority (COFECE), the companies will begin the integration process. Sonora Agropecuaria will become part of the Bachoco S.A. de C.V. subsidiary.
“This agreement is in line with our inorganic growth strategy, making synergy with our actual business line of live swine, allowing us to enter in the processed and export pork business,” Industrias Bachoco CEO Rodolfo Ramos said in a press release, issued on June 8. “We are expecting to integrate this operation as soon as possible in order to capture the opportunities that we have identified.”
Bachoco stated it will invest up to an additional MXN2 billion (US$91.6 million) over the next four years.
SASA currently has a production capacity of around 15,000 hogs per week and is one of the ten largest pork production companies in Mexico. SASA serves both the domestic and export markets.
Bachoco, which is also the parent company of U.S.-based OK Foods, is the largest broiler producer in Mexico and the 10th largest broiler company in the world, slaughtering 622 million birds annually. According to the WATTAgNet Top Poultry Companies Database, it holds nearly a 40% market share in Mexico.
As an egg producer, Bachoco ranks second among Mexican companies – trailing only Proteina Animal (PROAN) -- and is the world’s 13th largest egg company. It has a flock of 12.2 million laying hens.
In February, Bachoco released its financial results for the 2019 fiscal year. The company achieved a 1% increase in sales for the year.
