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Bachoco acquires U.S. chicken facility

Mexico's leading poultry producer purchases Oklahoma facility.

Industrias Bachoco S.A.B. de C.V. (Bachoco), Mexico's leading producer and processor of poultry and other food products, announced that it has reached an agreement to acquire a fully cooked facility in Oklahoma City, Okla., from American Foods Group.

The transaction is valued at approximately $11 million and comprises all of the assets located in Oklahoma City — with a capacity to produce more than 700,000 lb. per week — of fully cooked chicken products.

Bachoco chief executive officer Rodolfo Ramos said, "This is a strategic acquisition for our company as we continue to streamline and improve the product mix in our U.S. operations. This means that we will be able to integrate other further-processed customers into our sales mix and move out from the commodity market. This strategy is in line with our growth plans in the U.S."

The company expects to close the deal in February 2016 through the OK Foods subsidiary located in Arkansas and Oklahoma.

Bachoco is one of the largest poultry producers globally. It is a vertically integrated company with headquarters in Celaya, Guanajuato, in central Mexico. Its main business lines are: chicken, eggs, balanced feed, swine and other products.

Bachoco owns and manages more than a thousand facilities — organized in nine productive complexes and 64 distribution centers in Mexico — and a productive complex in the U.S. It currently employs more than 25,000 people.

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