Bachoco Concludes Acquisition Agreement of RYC Alimentos, in Mexico

Rhea-AI Summary

Industrias Bachoco S.A.B. de C.V. has completed the acquisition of RYC Alimentos, a meat processor and distributor in Puebla, Mexico. This deal includes two plants and approximately 21 stores across four states, valued at about $61 million. RYC generates annual net sales of around $150 million. This strategic move enhances Bachoco's market presence and product offerings in the meat sector.

Positive

• Acquisition of RYC Alimentos enhances Bachoco's market position in the meat processing sector.
• RYC's annual net sales of approximately $150 million contribute positively to Bachoco's revenue stream.
• Strategic expansion into multiple states increases distribution capabilities.

Negative

• None.

CELAYA, México--(BUSINESS WIRE)-- Industrias Bachoco S.A.B. de C.V. (“Bachoco” or “the Company”) (NYSE: IBA; BMV: Bachoco), announces today that the agreement to purchase 100% of the stocks of RYC Alimentos, “RYC” has concluded; RYC is a multiprotein meat processor and distributor with productive facilities in Puebla, Mexico.

The agreement contemplates the acquisition of 2 plants located in Puebla and approximately 21 stores located in 4 states of the Mexican Republic (Puebla, Oaxaca, Veracruz and Tlaxcala). This transaction will be done through Industrias Bachoco S.A.B. de C.V.

The stockholder’s equity of this company is valued at approximately $61 million US dollars. RYC produces and sells further processed and value-added products, with net sales around $150 million US dollars per year.

Founded in 1983, RYC is a meat processor and distributor mainly of beef, pork, and chicken with national coverage that participates in all the distribution channels with fresh and value-added products. This, along with the effort of more than 900 employees, has allowed RYC to be among the leading companies in its field.

COMPANY DESCRIPTION

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 80 distribution centers in Mexico, and a productive complex in the United States. Currently the Company employs more than 29,000 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.

DISCLAIMER

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220124005866/en/

Maria Jaquez

maria.jaquez@bachoco.net

Andrea Guerrero

andrea.guerrero@bachoco.net

+52(461)618 3555

Source: Industrias Bachoco S.A.B. de C.V.

FAQ

What is the financial value of the RYC Alimentos acquisition by Bachoco?

The acquisition of RYC Alimentos is valued at approximately $61 million.

How much annual revenue does RYC Alimentos generate?

RYC Alimentos generates annual net sales of around $150 million.

What facilities are included in Bachoco's purchase of RYC?

The acquisition includes two production plants in Puebla and about 21 stores across four states.

What impact does the acquisition of RYC have on Bachoco's market presence?

The acquisition enhances Bachoco's market position and expands its product offerings in the meat sector.