Tyson Buys Keystone Foodservice Operation
Tyson Foods will buy the Keystone Foods business from Marfrig Global Foods for $2.16 billion in cash.
“Keystone is a leading global protein company and will be a great addition,” said Tom Hayes, chief executive officer 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,” Hayes continued.
Headquartered in West Chester, Pennsylvania, Keystone supplies chicken, beef, fish and pork to quick-service restaurant chains, as well as convenience stores and other retail channels. Its value-added product portfolio includes chicken nuggets, wings and tenders, beef patties and breaded fish fillets.
The acquisition encompasses six processing plants and a U.S. innovation center with locations in Alabama, Georgia, Kentucky, North Carolina, Pennsylvania and Wisconsin, as well as eight plants and three innovation centers in China, South Korea, Malaysia, Thailand and Australia. The agreement, however, does not include the company’s beef patty processing plant in Ohio.
Keystone, which employs approximately 11,000 people, generated $2.5 billion in revenue in the 12 months ending June 30. During that period, the company generated approximately 65% of its revenue from U.S.-based production and the remaining 35% from its Asia-Pacific plants.
Tyson Foods ranked 11th on CGT's list of the Top 100 Consumer Goods Companies for 2017 with $36.8 billion in revenue.