POST Online Media Lite Edition



 

Tyson Foods buys Keystone Foods for $2.16 billion

Staff Writer |
Tyson Foods announced it has reached a definitive agreement to buy the Keystone Foods business from Marfrig Global Foods for $2.16 billion in cash.

Article continues below




The acquisition of Keystone, a major supplier to the growing global foodservice industry, is Tyson Foods’ latest investment in furtherance of its growth strategy and expansion of its value-added protein capabilities.

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.

The acquisition includes six processing plants and an innovation center in the U.S. with locations in Alabama, Georgia, Kentucky, North Carolina, Pennsylvania and Wisconsin. It does not include the beef patty processing plant in Ohio.

It also includes eight plants and three innovation centers in China, South Korea, Malaysia, Thailand and Australia.

Keystone, which employs approximately 11,000 people, generated annual revenue of $2.5 billion and Adjusted EBITDA of $211 million in the last 12 months ending June 30, 2018, excluding non-controlling interest and other adjustments1.

During the same period, the company generated approximately 65 percent of its revenue from U.S.-based production and the remaining 35 percent from its Asia Pacific plants.

Tyson Foods expects the acquisition to be accretive to GAAP EPS in the third year and accretive to adjusted EPS in the first year excluding transaction-related costs as well as the incremental depreciation and amortization associated with the transaction.

It also expects to generate annual synergies of approximately $50 million by the third year of the acquisition, driven by operational efficiencies, procurement savings, distribution and supply network optimization and other opportunities.

Terms and ClosingThe acquisition will be funded through a combination of existing liquidity and proceeds from the issuance of new debt.

Initial leverage metrics are expected to be well within levels appropriate for the company’s existing investment-grade credit ratings. The company plans to use its cash flows to pay down debt to continue to support its credit ratings and to strengthen its balance sheet.

The transaction, which has been approved by Tyson Foods’ board of directors, is expected to close in mid-fiscal 2019. It is subject to customary closing conditions, including regulatory approvals.


What to read next

Tyson Foods invests in cultured meat with stake in Memphis Meats
Tyson Foods to close plants in Wisconsin and Illinois
Tyson Foods completes acquisition of AdvancePierre

Heavy rainfall along U.S. eastern seaboard; dangerous heat wave shifting

 
A weak front with tropical moisture will be quasi-stationary over parts of the Northeast, Mid-Atlantic, and Southeast through Sunday.
 
 

Latest

U.S. drillers cut oil and gas rigs to 584
Attorney General Ken Paxton stops Biden’s ban on liquified natural gas exports
Germany to cut Huawei, ZTE parts in 5G network from 2026
Ericsson Q2 sales down but North America up

NEWS

U.S.: Dangerous heatwave

Severe thunderstorms across portions of U.S. Central Plains and Mississippi Valley; heat continues in Southern Plains
New Delhi airport roof collapses under heavy rain
Bulgaria: EPPO charges entrepreneur with fraud involving construction of dairy facility
Switzerland: Gotthard Base Tunnel on track to fully re-open in September
Heavy rain with flooding possible in southwest U.S. and upper Midwest; heat continues in east
 

BUSINESS

Scotland secured record inward investment in 2023

Chinese seaport cities register soaring output of port economy in 2023
U.S. bankruptcies in June hit record high since 2020
Baker Hughes U.S. oil rig count unchanged at 479
EU-Kenya trade agreement comes into effect
U.S. drillers cut oil and gas rigs to 581
 

Trending Now

Attorney General Ken Paxton stops Biden’s ban on liquified natural gas exports

Heavy rainfall along U.S. eastern seaboard; dangerous heat wave shifting

Canada and Alberta supporting Alberta Beef Producers

Citroën C3 Aircross, the most affordable compact SUV with 7 seats


POLITICS

North Macedonia to take 500 million euros loan from Hungary

Under Secretary Fernandez travels to Japan and Indonesia
€10.82 billion French State aid scheme to support offshore wind energy
EU approves Lufthansa Group-ITA Airways deal, subject to conditions
Europe imposes duties on Chinese electric vehicles
Australia and New Zealand to fund critical undersea cable infrastructure for Tonga
 

Today We Recommend

U.S. bankruptcies in June hit record high since 2020


Highlights 

Ericsson Q2 sales down but North America up

North Macedonia to take 500 million euros loan from Hungary

BYD to build factory in Türkiye


COMPANIES

APM Terminals Suape advances sustainable port operations with major investment in all-electric handling equipment

BYD to build factory in Türkiye
U.S. awards Moderna $176 mln for vaccine development amid bird flu outbreak
Robertshaw to close Trnava, Slovakia plant, plant assets available for sale
DOF Group to acquire Maersk Supply Service for $1.11 billion
CureVac sells COVID-19, flu vaccines to GSK amid restructuring
 

CAREERS

Africa Finance Corporation appoints executive director, financial services

Lindemann Metal Recycling: Markus Tandel named head of procurement and aftermarket
Travis Leonard joins Lockton as CFO
African Development Bank appoints director of statistics department
Azentio expands its leadership team with two new appointments
Afreximbank announces board changes
 

ECONOMY

Eurozone reports modest Q1 GDP growth, stable annual inflation

Italy sees faster economic growth in Q1
Slovenia's economy expected to grow 0.9 pct in Q1
Italy faces deficit infringement procedure
Real GDP increased in all 50 U.S. states
Inflation continues to decline in Germany
 

EARNINGS

Lockton revenue $3.55 billion

Motorcar Parts of America Q4 sales $189.5 million
Limoneira Q2 revenue $44.6 million
Lululemon athletica Q1 revenue increased 10% to $2.2 billion
PVH Q1 GAAP EBIT $205 million
Dollar General Q1 operating profit decreased 26.3%
 

OP-ED

Micromanaging is the worst enemy of efficiency and teamwork

Niger set to monetize massive gas reserves through Saharan natural gas pipeline
Putting the brakes on EV folly that choked the market
Oil discovery in Kavango Basin may mean huge benefits for Namibians
Cape Town and Dubai battle over Africa's energy future
Is America going to lose its superpower status?
 

AGRIFISH

Canada and Alberta supporting Alberta Beef Producers

EU allocates €77 million in emergency support to farmers in Austria, Czechia, Poland and Portugal
Brazil opened its market for Australian mutton and lamb
Hong Kong suspends import of poultry meat and products from areas in Australia and U.S.
World's first: Denmark to impose CO2 tax on livestock
Finland to start bird flu vaccinations for humans, in world first
 

LEADERSHIP

Study finds workers misjudge wage markets

Some organizations may need to expand their hierarchical structures earlier than others
Study finds there's right way and wrong way to deliver negative feedback in workplace
Allyship is critical and its needs appreciation
Generating 'buzz' about new products can influence their success
Hiring 'problem directors' can knock up to 64% off firm's value
 

CRIME

Italy issues $6.4 million fine over Chinese cars badged as Italian

EU Commission fines Mondelēz €337.5 million for cross-border trade restrictions
HSBC pays penalties for alleged breaches of Consumer Data Right rules
Sanofi to settle thousands of Zantac cancer lawsuits
Former asset manager and board member of Geneva private bank referred to Swiss Federal Criminal Court
South Africa: SAP ordered to pay SIU $26m over 'invalid' Eskom contracts
 

Magazine

TRAVEL

Radisson Hotel Group debuts in the heart of Tunisia’s capital city, Tunis

Morocco’s first Radisson branded hotel opens in Casablanca
Buna channels, an unreal and beautiful part of Bosnia and Herzegovina
JW Marriott unveils Mindful Haven with opening of JW Marriott Hotel Nairobi
Sotheby's Sports Week returns with fantastic artifacts
Red Roof properties open in Michigan
 

SEA, LAND, AIR

Citroën C3 Aircross, the most affordable compact SUV with 7 seats

2025 Chevrolet Equinox stands apart with fresh looks and capability
Hill Helicopters HX50, luxury in the sky
Opel Movano becomes fully equipped camper van
Porsche Panamera, new hybrid variants
Dodge Charger, 670 horsepower of electric
 

DESIGN

Cold night, hot fire pit, cool entertainment

Embellish your home with PVC panels
You'll have to hurry if you want one of 20 new Louis Vuitton watches
Luxury duvet looks good, fells good and keeps you healthy
Vacheron Constantin, watches for life and more
Schüller kitchens, where functionality marries design
 

GADGETS

MESA/Boogie Celebrates 40-year partnership with John Petrucci

reMarkable 2, monochrome tablet for your thoughts and your eyes
OnePlus Ace 3V, first with Snapdragon 7 Plus Gen 3
ASUS Zenfone 11 Ultra, flagship with a reason
Samsung Galaxy S24 is photography powerhouse
Casette tapes are making a big comeback, and so are portable players
 

HEALTH

New Alzheimer's treatment approved by FDA

UK introduced new pregnancy prevention measures for topiramate (Topamax)
UK: People with HIV can now donate eggs or sperm to start family
EU health watchdog urges vaccinations to stem surge in Whooping Cough cases
Brazil resumes insulin production after two decades
India launches first home-grown gene therapy for cancer
 

MEANTIME

India to build first phase of its own space station by 2028

Roscosmos chief approves schedule of creating Russian orbital station through 2033
Potentially habitable 'exo-Venus' with Earth-like temperature discovered
Rare species of wild bees discovered in Berlin
SLAC completes construction of largest digital camera ever built for astronomy
Solar eclipse next week in U.S., Mexico and Canada