Springdale-based Tyson Foods announced today that it is acquiring Keystone Foods, a major supplier for McDonald’s, for $2.16 billion in cash.
From the press release:
Headquartered in West Chester, Pennsylvania, Keystone supplies chicken, beef, fish and pork to some of the world’s leading quick-service restaurant chains, 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.
Keystone employs approximately 11,000 people and generates an annual revenue of $2.5 billion, according to the press release.
The acquisition includes six processing plants and an innovation center in the U.S., located in in Alabama, Georgia, Kentucky, North Carolina, Pennsylvania and Wisconsin, as well as eight plants and three innovation centers in Asia and Australia.
Tom Hayes, president and CEO of Tyson Foods, said in a statement:
Keystone is a leading global protein company and will be a great addition to 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.
Here’s more on the deal from Bloomberg, which predicted that it was coming on Friday.
Tyson was also the subject of a big feature in Bloomberg Businessweek last week, which gave the lowdown on the behemoth’s footprint in the meat business:
Tyson produces 1 of every 5 pounds of meat consumed in the U.S. Hayes and his 122,000 employees annually process and sell $15 billion worth of beef, $11 billion of chicken, and $5 billion of pork. They also formulate, package, and sell $8 billion in prepared foods under a brand roster that includes Hillshire Farm, Jimmy Dean, Ball Park Franks, Original Philly Cheesesteak, and Aidells Sausage. Half of the products are distributed by retail grocers; most of the rest go to McDonald’s, Burger King, Wendy’s, KFC, and other food-service outlets.
That footprint just got bigger.