Fredericks Michael & Co. acted as the exclusive financial advisor to Industrias Bachoco, S.A.B. de C.V., the leading poultry producer in Mexico and one of the largest poultry producers worldwide, on the acquisition of RYC Alimentos, S.A. de C.V., a leading multiprotein producer based in Central Mexico providing quality, innovative, value-added products to consumers in Mexico.
The RYC acquisition marks a key strategic step towards Bachoco’s goals of becoming the leading multiprotein company in Mexico, and it will allow the company to continue to grow its presence in animal protein products other than poultry – mainly pork and beef - in the Mexican market, which is the second largest in Latin America.
Founded in 1983, RYC is a processor and distributor of meat products, mainly beef, pork and chicken, with a nationwide coverage and participating in all relevant distribution channels with both fresh and value-added products. This, together with the hard work and commitment of over 900 collaborators, has allowed RYC to position itself within the leaders in this category in the country. Bachoco and RYC will continue to work together on a path toward a strengthening their combined multi-protein product offerings for human consumption, a path that both companies have strongly embraced.
The transaction contemplates the acquisition of two production facilities located in the state of Puebla, Mexico, as well as RYC’s network of approximately 21 company-owned retail stores in four states in Mexico (Puebla, Oaxaca, Veracruz and Tlaxcala). The transaction has been executed by Industrias Bachoco, S.A.B. de C.V., and the value of RYC’s Shareholder Equity is approximately USD 61 million, with revenues of approximately USD 150 million each year.
Fredericks Michael & Co. initiated this transaction and acted as exclusive financial advisor to Bachoco on a multi-step engagement process which included establishing a relationship with RYC, coordinating the due diligence process, transaction structuring, and assistance in the negotiations through closing of the transaction.
About Industrias Bachoco, S.A.B. de C.V.
Founded in 1952 with corporate offices in Celaya, Mexico, Bachoco is vertically integrated and its main product lines include: chicken, egg, balanced animal feed and swine. Bachoco has over one thousand locations organized in nine production complexes and sixty-six distribution centers in Mexico, as well as a production and distribution structure in the United States. Bachoco currently employs over 28,000 people. Bachoco started trading in the Mexican Stock Exchange and the New York Stock Exchange in 1997. Bachoco has been rated “AAA (MEX)”, the highest rating by Fitch Mexico, S.A. de CV., and “HR AAA”, which means that the issuer or the issuance are of the highest credit rating by HR Ratings de Mexico, S.A. de C.V. For more information, visit www.bachoco.com.mx
Based in Puebla, Puebla, Mexico, RYC is a leading meat processor and distributor, focusing mainly on beef, pork and chicken with nationwide reach in Mexico. As a Central Mexico industry pioneer, the company offers quality products at competitive prices to consumers nationwide, both through the traditional and modern retail channels, as well as through its own retail store network with presence in Central Mexico and the Gulf of Mexico region. For more information, visit www.rycalimentos.com