The acquisition includes six processing plants and an innovation centre in the US, with locations in Alabama, Georgia, Kentucky, North Carolina, Pennsylvania and Wisconsin. However, it does not include the beef patty processing plant in Ohio. The deal also includes eight plants and three innovation centres in China, South Korea, Malaysia, Thailand and Australia.
Keystone supplies chicken, beef, fish and pork to the foodservice industry, as well as retail and convenience store channels. Its value-added product portfolio includes chicken nuggets, wings and tenders; beef patties; and breaded fish fillets. It employs approximately 11,000 people, generated annual revenue of $2.5bn and adjusted EBITDA of $211m in the last 12 months ending 30 June 2018.
Tyson Foods said the acquisition was part of its move towards value added protein.
“Keystone is a leading global protein company and will be a great addition to Tyson Foods,” said Tom Hayes, president and CEO of Tyson Foods. “This acquisition will expand our international presence and value-added production capabilities and help us deliver more value to our foodservice customers. Keystone provides a significant foundation for international growth with its in-country operations, sales and distribution network in high-growth markets in the Asia-Pacific region, as well as exports to key markets in Europe, the Middle East and Africa. We look forward to serving customers with these additional capabilities and to welcoming Keystone’s dedicated team members to the Tyson Foods family.”
Marfrig said the deal plus the retention of the beef plant in Ohio was part of its strategy to focus on beef. A statement said: “The decision to continue with the North Baltimore plant is in line with the strategy with growth in cattle, including the recent acquisition by the company of a majority interest in National Beef Packing Company, the control of which was acquired by Marfrig in June 2018.”