SPRINGDALE (KFSM) — Tyson Foods confirmed Monday (Aug. 20) it will acquire West Chester, Penn.,-based Keystone Foods for $2.16 billion in cash as it seeks to grow its prepared foods and international segments.
Tyson said it will finance the acquisition from with new debt, and it will take three years before the deal is likely accretive to earnings, though it expects to bolster profits sooner on an adjusted basis, excluding transaction costs.
Tyson picks up six processing plants and an innovation center in the U.S. with locations in Alabama, Georgia, Kentucky, North Carolina, Pennsylvania and Wisconsin, and eight plants and three innovation centers in China, South Korea, Malaysia, Thailand and Australia.
Keystone has around 11,000 employees and is owned by Brazilian based Marfrig Global Foods.
Tyson expects the deal will close by mid-2019, subject to regulatory approval.
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