October 4, 2010

Marfrig fully acquires Keystone

Brazilian meat processor Marfrig Alimentos is to finalise the acquisition of US-based Keystone Foods Friday (Oct 1).

Marfrig, the world's fourth-largest beef producer, recently obtained approval from antitrust regulators in the US and Europe to buy Keystone.

Keystone, the US company that pioneered mass production of boneless chicken nuggets in the 1970s, was acquired in June by Marfrig for US$1.26 billion.

To finance the acquisition, Marfrig last month issued 250,000 debentures worth R$2.5 billion (US$1.5 billion), fully subscribed by the state-run Brazilian Development Bank (BNDES).

Based in Pennsylvania, Keystone supplies beef, poultry, fish, and pork products to more than 28,000 restaurants in 13 countries. Its clients include major food conglomerates such as McDonald's, Campbell's, Subway, ConAgra, and Yum Brands.