Bachoco Reaches an Agreement to Acquire Norson, in Mexico

Rhea-AI Summary

Industrias Bachoco has announced the acquisition of 100% of Norson Holding, a major pork producer in Mexico. This strategic move aligns with Bachoco's growth plans in the pork sector and its diversification strategy across protein sources. Norson, with over 40 years in the industry, operates a fully integrated supply chain and exports to key markets including the USA, Japan, China, and Korea. The acquisition is pending approval from Mexican antitrust authorities, COFECE, before further details are disclosed.

Positive

• Acquisition of Norson enhances Bachoco's presence in the pork sector.
• Vertically integrated supply chain of Norson allows for operational synergies.
• Expansion of export markets enhances revenue potential.

Negative

• None.

CELAYA, Mexico & GUANAJUATO, Mexico--(BUSINESS WIRE)-- Industrias Bachoco S.A.B. de C.V. (“Bachoco” or “the Company”) (NYSE: IBA; BMV: BACHOCO), announced today that it has achieved a business agreement to acquire 100% of the capital equity of Norson Holding S. de R.L. of C.V., a vertically integrated pork producer and exporter, located in Sonora, Mexico.

With more than 40 years of presence in the market, Norson is a relevant pork producer in Mexico. Norson’s integration consists of genetics, hog farms, feed mills, slaughter and cut facilities, value added facilities, distributions centers and owned retail shops. Norson also participates in the export market; USA, Japan, China and Korea are their main commercial destinations. This, along with the effort of more than 3,600 collaborators, has allowed them to be one of the leading companies within their industry.

This agreement must be reviewed by Mexican antitrust authorities, COFECE. Once authorized, more details of the transaction will be given.

Rodolfo Ramos, CFO, stated:

“This agreement is in line with our growth plans for our pork business and follows our diversification strategy in other proteins.

Once we have the approval of the corresponding authorities, we will proceed to integrate and capture the identified synergies. With this, we continue reinforcing our presence in the Mexican market, in order to become one of the main producers of animal protein.”

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 32,000 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.

EXENCIÓN DE RESPONSABILIDAD. 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.

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Investor Relations Area

Phone: (461)6183555

inversionistas@bachoco.net

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

FAQ

What is the significance of Bachoco acquiring Norson Holding?

The acquisition allows Bachoco to expand its pork production and diversify its protein offerings.

What are the main markets for Norson Holding?

Norson primarily exports to the USA, Japan, China, and Korea.

What is the status of the acquisition process for Norson?

The acquisition is awaiting approval from Mexican antitrust authorities, COFECE.

How will this acquisition impact Bachoco's business strategy?

It reinforces Bachoco's growth strategy in the animal protein sector.