Tyson Foods Is Buying Fast Food Supplier Keystone Foods for $2.16 Billion

August 20, 2018, 2:11 PM UTC

Tyson Foods announced Monday that it would buy Keystone Foods in a $2.16 billion deal.

Tyson, which is the largest U.S. meat supplier by sales, will expand its range of products and have a larger global reach with the acquisition.

Keystone is a supplier of meat protein to fast food restaurants and retail stores across the world, including serving as a major supplier of chicken nuggets to McDonald’s. Other products include beef patties, ready-to-cook chicken wings, and fish filets. Tyson will purchase Keystone from Brazil’s Marfrig Global Foods, which had bought out Keystone in 2010 and announced plans to sell earlier this year.

Tyson’s acquisition of Keystone will include six processing plants and an innovation center in the U.S. in Alabama, Georgia, Kentucky, North Carolina, Pennsylvania, and Wisconsin. It will also include eight plants and three innovation centers internationally, in China, South Korea, Malaysia, Thailand, and Australia.

Tom Hayes, president and CEO of Tyson Foods, said in a statement that 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.”

Keystone generated annual revenue of $2.5 billion in the last 12 months ending June 30 before interest, taxes depreciation, and amortization of $211 million. It currently employs approximately 11,000 people.

The deal is expected to close by mid next year.