August 21, 2018
Tyson Foods to acquire meat supplier to fast-food chains for $2.16B
Keystone - headquartered in West Chester, Pennsylvania, USA - is a major supplier of beef patties, chicken fillets and patties, nuggets and wings, among others, to leading quick-service restaurant chains, as well as retail and convenience store channels. Specifically, it is the largest supplier of chicken nuggets to McDonald's.
The acquisition includes six processing plants and an innovation center in the US 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 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, which employs some 11,000 people, generated annual revenue of $2.5 billion and adjusted Ebitda (earnings before interest, taxes, depreciation and amortization) of $211 million in the last 12 months ending June 30, 2018, excluding non-controlling interest and other adjustments.
During the same period, the company generated around 65% of its revenue from US-based production and the remaining 35% from its Asia-Pacific plants.
The acquisition, 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.
Tyson Foods - headquartered in Springdale, Arkansas, USA - is one of the world's largest food companies and a recognised leader in protein. Founded in 1935 by John W. Tyson, the company has a broad portfolio of products and brands like Tyson®, Jimmy Dean®, Hillshire Farm®, Ball Park®, Wright®, Aidells®, ibp® and State Fair®.