Bachoco Completes Acquisition of O.K. Industries

by 5m Editor
4 November 2011, at 10:16am

MEXICO - Industrias Bachoco S.A.B. de C.V., Mexico's leading producer and processor of poultry and other food products, announced on Wednesday, 2 November, that the Company has successfully concluded the process of acquiring the American poultry company, O.K. Industries, Inc.

In a press release issued on 28 October, Bachoco announced it had reached an agreement to acquire O.K. an American Company. Now that all requirements have been met, the acquisition of O.K. is complete.

The total amount paid for O.K. was approximately US$ 95 million, taking into account primary working capital needs. The amount was paid in cash, part of which came from utilizing one of Bachoco's credit lines and the remainder from Bachoco's own resources. In its third quarter 2011 results, Bachoco announced cash and cash equivalents of US$ 236 million as of 30 September 2011.

No debt was assumed from O.K. who's normalized EBITDA is estimated to be approximately US$ 20 million per year.

Bachoco reiterates that O.K. will continue operating under the same name and brands, with basically the same management team while maintaining its nearly 4,000 local workers.

Rodolfo Ramos, Bachoco's Chief Executive Officer, stated: "We are very pleased to complete this acquisition and extend a warm welcome to all our new staff members and suppliers. I am very confident that working together, we will provide excellent service and quality products to all of our current and new customers."