Tyson Foods Acquires Keystone Foods

Largest U.S. meat producer agrees to buy chicken nugget-maker Keystone Foods.

August 21, 2018

SPRINGDALE, Arkansas – Tyson Foods is expanding its international reach and product offerings with a $2.16 billion deal to buy the Keystone Foods business of Marfrig Global Foods. Tyson is the largest U.S. meat supplier by sales, best known for its Jimmy Dean sausages, and Keystone Foods is a major supplier of chicken nuggets to McDonald’s.

Keystone Foods, headquartered in Philadelphia, supplies chicken, beef, fish and pork to major quick-service restaurant chains, retail and convenience store channels. The company employs approximately 11,000 people and reported a revenue of $2.5 billion in the past 12 months.

Tom Hayes, president and CEO of Tyson Foods, said in a statement that Keystone “provides a significant foundation for international growth with its in-country operations, sales and distribution network in high-growth markets in the Asia Pacific region as well as exports to key markets in Europe, the Middle East and Africa.”

According to Fortune.com, the acquisition includes six processing plants and an innovation center in the U.S., as well as eight plants and three innovation centers internationally. The deal is expected to close in mid-2019.