OK: Bachoco Invests $11M for U.S. Fully Cooked Facility
22 Dec, 2015
Industrias Bachoco S.A.B. de C.V. ("Bachoco" or "the company") (NYSE: IBA; BMV:Bachoco), Mexico's leading producer and processor of poultry and other food products, announced it reached an agreement to acquire from American Foods Group a Fully Cooked facility located in Oklahoma City, OK.
The transaction is valued at approximately $11 million. This acquisition comprises all the assets located in Oklahoma City, with a capacity to produce over 700,000 pounds per week of fully cooked chicken products.
Rodolfo Ramos, Bachoco's chief executive officer, stated: "This is a strategic acquisition for our company as we continue to streamline and improve the product mix in our U.S. operations. This means that we will be able to integrate other further processed customers into our sales mix and move out from the commodity market. This strategy is in line with our growth plans in the U.S."
The company expects to close the deal in February, 2016 through OK Foods subsidiary located in Arkansas and Oklahoma.
Industrias Bachoco is the leader in the Mexican poultry industry, and one of the largest poultry producers globally.
The company was founded in 1952, and became a public company in 1997, via a public offering of shares on the Mexican and The New York Stock Exchange. Bachoco is a vertically integrated company headquartered in Celaya, Guanajuato located in Central Mexico. Its main business lines are: chicken, eggs, balanced feed, swine and other products. Bachoco owns and manages more than a thousand facilities, organized in nine productive complexes and 64 distribution centers in Mexico, and a productive complex in the United States. Currently the Company employs more than 25,000 people. The company is rated AAA (MEX), the highest rating awarded by Fitch Mexico, S.A. de C.V., and HR AAA which signals that the company and the offering both have the highest credit quality by HR Ratings de Mexico S.A. de C.V.