Tyson Foods Completes Deal for Keystone Foods

by Lance Turner  on Friday, Nov. 30, 2018 3:35 pm   1 min read

Noel White (Tyson Foods Inc.)

Tyson Foods Inc. of Springdale said Friday that it has completed its $2.16 billion cash acquisition of Keystone Foods from Marfrig Global Foods of São Paulo, Brazil.

The publicly traded meat processor said the purchase of Keystone, first announced in August, aligns with its domestic and international growth strategy. Keystone is a leading supplier of chicken, beef, fish and pork to the global foodservice industry.

"Our biggest growth opportunities are in value-added foods and international markets. Our acquisition of Keystone helps us achieve both," Tyson President and CEO Noel White said in a news release. "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, as well as another "innovation center" and six processing plants in Alabama, Georgia, Kentucky, North Carolina, Pennsylvania and Wisconsin. 

Keystone supplies meat to quick-service restaurant chains and retail and convenience stores. Products include chicken nuggets, wings and tenders; beef patties; and breaded fish fillets. Clients include McDonald's Corp.

"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."

Keystone employs about 11,000 people. According to Tyson, the company generated annual revenue of $2.5 billion and adjusted EBITDA of $211 million in the last 12 months ending June 30.

 

 

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