CELAYA, Mexico, June 8, 2020 /PRNewswire/ -- Industrias Bachoco S.A.B. de C.V. ("Bachoco" or "the Company") (NYSE: IBA; BMV: Bachoco), announced today, after Mexican Antitrust Authorities approval (COFECE) that the agreement on investing in the company Sonora Agropecuaria S.A. de C.V. "SASA", a swine processing and distributor company with operations in the states of Sonora and Jalisco, has been closed. The beginning of this process was first announced at the end of 2019.
This agreement states that Bachoco will acquire the 54.8% of SASA capital stock. It also contemplates the acquisition of the assets related to Bachoco's live swine business by SASA. This transaction will be done through Bachoco S.A. de C.V subsidiary.
After the investment, acquisition and integration derived from this agreement, Bachoco will invest in the swine business up to $2,000 million pesos in the next 4 years of the integration.
Being one of the top ten processors in Mexico, SASA has a production capacity of around 15,000 hogs per week, serving both the domestic and export markets.
Rodolfo Ramos, Bachoco´s CEO, stated:
"This agreement is in line with our inorganic growth strategy, making synergy with our actual business line of live swine, allowing us to enter in the processed and export pork business.
We are expecting to integrate this operation as soon as possible in order to capture the opportunities that we have identified."
Industrias Bachoco is the leader in the Mexican poultry industry, and one of the largest poultry producers globally.
The Company was founded in 1952, and became a public Company in 1997, via a public offering of shares on the Mexican and The New York Stock Exchange. Bachoco is a vertically integrated Company headquartered in Celaya, Guanajuato located 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 66 distribution centers in Mexico, and a productive complex in the United States. Currently the Company employs more than 28,000 people. The Company is rated AAA (MEX), the highest rating awarded by Fitch Mexico, S.A. de C.V., and HR AAA which signals that the Company and the offering both have the highest credit quality by HR Ratings de Mexico S.A. de C.V.
The document contains certain information that could be considered forward looking statements concerning anticipated future events and performance of the Company. The statements reflect management's current beliefs based on information currently available and are not guarantees of future performance and are based on our estimates and assumptions that are subject to risks and uncertainties, including those described in our Annual Information Form, which could cause our actual results to differ materially from the forward-looking statements contained in this document. Those risks and uncertainties include risks associated with ownership in the poultry industry, competition for investments within the poultry industry, shareholder liability, governmental regulation, and environmental matters. As a result, there can be no assurance that actual results will be consistent with these forward-looking statements. Except as required by applicable law Industrias Bachoco, S.A.B. de C.V. undertakes no obligation to publicly update or revise any forward-looking statement.
SOURCE Industrias Bachoco, S.A.B. de C.V.