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Bachoco Acquires US Breeding Operation

10 July 2013

MEXICO - Industrias Bachoco S.A.B. de C.V., Mexico's leading producer and processor of poultry and other food products, announced that it has reached an agreement to acquire the breeding assets in Arkansas of Morris Hatchery Inc., a US company.

These assets comprise mainly equipment and bird inventory. This operation has a capacity of around 350 thousand laying hens that produces hatching eggs.

Rodolfo Ramos, Bachoco's Chief Executive Officer, stated: "This is a strategic acquisition for our Company for several reasons; first, it will rapidly reinforce our supply of hatching eggs for our Mexico and US operations, thus ensuring a proper supply of chicken for our customers; secondly, it represents a step towards our organic growth, and; lastly, this operation is located in a region far enough from our current breeding complexes, thereby increasing dispersion and reducing sanitary risks for our operations."

This acquisition will take effect immediately

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