Bloomberg News is reporting that Tyson Foods is close to acquiring Keystone Foods from Brazilian food company Marfrig Global Foods SA. Marfrig, which acquired Keystone in 2010, is looking to use the proceeds from the sale to fund its acquisition of a controlling stake in National Beef Packing Co.
Sources report that Marfrig has selected five bidders for the final phase of the sale process. Along with Tyson, other interested bidders include an unidentified Japanese firm, China’s Cofco Ltd. and George’s Inc.
Keystone had revenue of $2.8 billion last year and has operations in seven U.S. states as well as in South Korea, China, Malaysia, Thailand and Australia. The company is a supplier of chicken nuggets to McDonald’s, among other business.
Source: Bloomberg