Tyson, the largest U.S. meat company, will buy Keystone Foods for $2.16 billion. Keystone’s prior owner, Marfrig Global Foods, announced the brand was up for sale earlier this year. The deal will face regulatory review in at least the U.S. and China.
Keystone has about 11,000 employees at its plants in the United States, China, South Korea, Malaysia, Thailand, and Australia. It is a key beef, chicken and beef supplier to McDonald’s—in the form of chicken nuggets and fish filets—and other fast food and convenience food chains.
“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,” said Tyson president and CEO Tom Hayes, in a statement.
The deal comes as the top meat companies jostle for dominance in a sector that is increasingly controlled by just a few players. In April of this year, Keystone’s previous owner, the Brazilian company Marfrig Global Foods, became the No. 2 beef company in the world when it bought 51 percent of National Beef. Marfrig had acquired Keystone in 2010.