Bachoco Reaches Acquisition Agreement of RYC Alimentos, in Mexico

Rhea-AI Summary

Industrias Bachoco S.A.B. de C.V. (NYSE: IBA; BMV: Bachoco) announced it has received approval from Mexican Antitrust Authorities (COFECE) to purchase 100% of RYC Alimentos, a leading meat processor and distributor. This acquisition will enhance Bachoco's market presence and operational capacity. Founded in 1983, RYC serves all distribution channels and employs over 900 staff. The deal marks the conclusion of the approval process initiated in December 2020 and is set to close imminently, with integration efforts to follow.

Positive

• Acquisition of RYC Alimentos enhances market position and operational capacity.
• RYC's established distribution channels and workforce support growth.

Negative

• None.

CELAYA, México--(BUSINESS WIRE)-- Industrias Bachoco S.A.B. de C.V. (“Bachoco” or “the Company”) (NYSE: IBA; BMV: Bachoco), announced today, that Mexican Antitrust Authorities (COFECE) agreed with the purchase of 100% of the stocks of RYC Alimentos (RYC), deal that we will close in the following days so we can start with the integration process. This concludes the approval process that Bachoco initially announced in December 2020.

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/20211213005970/en/

Maria Guadalupe Jaquez

maria.jaquez@bachoco.net

Andrea Guerrero

andrea.guerrero@bachoco.net

T. +52(461)618 3555

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

FAQ

What is the purpose of Bachoco's acquisition of RYC Alimentos?

The acquisition aims to enhance Bachoco's market presence and operational capacity in the meat processing sector.

When did Bachoco announce the acquisition of RYC Alimentos?

Bachoco announced the acquisition approval process in December 2020, with final approval received recently.

What impact will the acquisition of RYC have on IBA's operations?

The acquisition is expected to expand IBA's distribution capabilities and product offerings in the meat sector.

How many employees does RYC Alimentos have?

RYC Alimentos employs over 900 staff members.

What is the timeline for closing the RYC Alimentos deal?

The deal is set to close in the following days after receiving approval.