Brazil’s Marfrig buys Keystone Foods of the US
Purchase makes Marfrig major global foodservice player
Brazil’s Marfrig Alimentos has acquired Keystone Foods of the US, a company with global presence and operations in the development, production and distribution of poultry, beef, fish, pork and other products for the foodservice channel. The acquisition makes Marfrig a leading supplier to the McDonald’s Corporation, Campbell’s, Subway, ConAgra, Yum Brands and Chipotle.
Keystone Foods, the US’ largest privately held meat products company, is headquartered in West Conshohocken, Pennsylvania, and serves more than 28,000 restaurants in 13 countries. In 2009, the company operated with 12,900 employees in 54 units, and had net revenues of US$6.4 billion on its food production and distribution businesses.
Marfrig is acquiring the business for US$1.26 billion (on an Enterprise Value basis) and the closing of the transaction is subject to customary conditions applicable to similar transactions, including approval by anti-trust authorities.
Commenting on the purchase, Marfrig Group chairman and president, Marcos Molina said: “The global food market is growing and Brazil has capitalized on this growth by strategically consolidating within the protein industry.
“By adding the resources and expertise of Keystone Foods and its management team, we are expanding Marfrig’s business with a scale and sustainable supply chain needed to meet the very significant growth opportunities within the industry and to attend to the needs of our global clients.”