Industrias Bachoco acquires US poultry processor

Industrias Bachoco, a Mexico-based producer and processor of poultry and other food products, has completed the acquisition of US-based poultry company OK Industries in a $95m all-cash deal.

At the end of October, Industrias Bachoco announced that it entered into an agreement to acquire OK Industries.

The acquisition was funded by utilising one of Bachoco’s credit lines and the rest was raised from Bachoco’s own resources.

The deal had no debt assumption from OK, which has a normalised estimated EBITDA of nearly $20m a year.

Bachoco said that OK will continue to operate under the same name and brands, and will retain its management team as well as nearly 4,000 local workers.

OK Industries, which has facilities in Arkansas and Oklahoma, processes 2.5 million chickens a week, and has annual sales of $600m.