Industrias Bachoco intends to expand its presence in the pork and animal feed industries, as it has reached a business agreement to acquire 100% of the capital equity of Norson Holding, a vertically integrated pork producer and exporter, located in Sonora, Mexico.
With more than 40 years of presence in the market, Norson is a relevant pork producer in Mexico. Norson’s integration consists of genetics, hog farms, feed mills, slaughter and cut facilities, value added facilities, distribution centers and owned retail shops. Norson also participates in export markets, with the United States, Japan, China and Korea as its main commercial destinations. This, along with the effort of more than 3,600 collaborators, has allowed Norson to be one of the leading companies within the industry.
Bachoco, primarily known as a broiler and egg producer, entered the pork industry in 2020 with the acquisition of Sonora Agropecuarira. It furthered its presence in the pork industry earlier in 2022 with the acquisition of RYC Alimentos, a meat processor and distributor mainly of beef, pork, and chicken with national coverage that participates in all the distribution channels with fresh and value-added products.
This agreement must be reviewed by Mexican antitrust authorities, COFECE. Once it is authorized, more details of the transaction will be given.
“This agreement is in line with our growth plans for our pork business and follows our diversification strategy in other proteins,” said Bachoco Chief Financial Officer Rodolfo Ramos. “Once we have the approval of the corresponding authorities, we will proceed to integrate and capture the identified synergies. With this, we continue reinforcing our presence in the Mexican market, in order to become one of the main producers of animal protein.”
Industrias Bachoco was founded in 1952, and became a public company in 1997, via a public offering of shares on the Mexican and The New York Stock Exchange. The vertically integrated company is headquartered in Celaya, Guanajuato, located in Central Mexico.
According to the Poultry International Top Companies survey, Bachoco ranks as the largest broiler producer in Mexico and the ninth largest in the world. In terms of egg production, Bachoco is Mexico’s second largest producer and thee 14th largest producer in the world.
Bachoco’s OK Foods subsidiary is listed as the 17th largest broiler producer in the United States, however, with the merger of third-ranked Sanderson Farms and seventh-ranked Wayne Farms, OK Foods moved up a notch.
