ShapeShapeauthorShapechevroncrossShapeShapeShapeGrouphamburgerhomeGroupmagnifyShapeShapeShaperssShape

Bachoco Makes its First International Acquisition

by 5m Editor
31 October 2011, at 11:12am

MEXICO & US - Industrias Bachoco S.A.B. de C.V., Mexico's leading producer and processor of poultry and other food products, has announced that it has reached an agreement to acquire O.K. Industries, Inc., a privately owned poultry company in the US.

Founded in 1933, O.K. Industries, Inc. has grown from a local, balanced feed company into one of the largest vertically integrated poultry companies in the United States. Headquartered in Fort Smith, Arkansas, O.K. operates facilities across the River Valley area in Arkansas and Oklahoma, processing 2.5 million chickens per week, with total annual sales of approximately US$600 million, O.K. supplies grocery retailers, food-service distributors and commodity customers in all US as well as foreign markets.

Rodolfo Ramos, Bachoco's Chief Executive Officer, stated: "This acquisition is one of the most transcendental steps for Bachoco, since it is our first international acquisition and first entry into the US poultry market.

"Bachoco will benefit from the knowledge and expertise of O.K.'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.

"With the acquisition of O.K. Industries, Bachoco reinforces its commitment to serving its markets, through the incorporation of its nearly 4,000 local workers into the Company's workforce, as well as hundreds of regional growers. Bachoco will continue to operate its newly-acquired entity as O.K. Industries, Inc.," said Mr Ramos.

The transaction will take effect immediately and will be complete as all the authorities' requirements are satisfied.