Tyson Foods has agreed to buy the Pennsylvania-based Keystone Foods business from Marfrig Global Foods for $2.16bn.
The deal includes six processing plants and an innovation centre in the US with locations in Alabama, Georgia, Kentucky, North Carolina, Pennsylvania and Wisconsin. It also includes eight plants and three innovation centres in China, South Korea, Malaysia, Thailand and Australia.

Tom Hayes, president and chief executive officer of Tyson Foods, said: “This acquisition will expand our international presence and value-added production capabilities and help us deliver more value to our foodservice customers.

“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. We look forward to serving customers with these additional capabilities and to welcoming Keystone's dedicated team members to the Tyson Foods family.”

In the 12 months to 30 June, Keystone – which supplies fresh and frozen animal protein products – generated revenue of $2.5bn and adjusted earnings before interest, taxes, depreciation and amortisation of $211m.

Tyson Foods expects the acquisition to be accretive to GAAP earnings per share in the third year and accretive to adjusted EPS in the first year excluding transaction-related costs as well as the incremental depreciation and amortisation associated with the transaction.

It also expects to generate annual synergies of around $50m by the third year of the acquisition.

The deal, which will be funded through a combination of existing liquidity and proceeds from the issuance of new debt, is due to close mid-fiscal 2019.