Mexican poultry group Industrias Bachoco has entered the US market for the first time with the acquisition of local peer OK Industries.
The deal is the first overseas acquisition for Bachoco, which is Mexico’s largest poultry processor.
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Bachoco CEO Rodolfo Ramos called the acquisition, struck for an undisclosed sum, “one of the most transcendental steps” for the company.
“Bachoco will benefit from the knowledge and expertise of OK’s experienced management team, a key reason behind their industry leadership. This will also enable Bachoco to enhance its product offering and regional footprint, while achieving a better understanding of the US chicken market,” Ramos said on Friday (28 October).
OK Industries, which is based in Arkansas, has production facilities in the state and in Oklahoma. According to Bachoco, it processes 2.5m chickens a week and supplies retailers, foodservice and commodity customers in the US and international markets. OK Industries’ annual sales are US$600m, Bachoco said.
On Thursday, Bachoco filed a third-quarter loss due to an over-supply of chicken and higher feed costs.
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By GlobalDataThe cost of feed has had an impact on Bachoco throughout 2011. In August, it said its half-year profits had fallen due to higher grain costs.
