ALFA Expands Presence in the U.S. Packaged Meats Market
This is an important milestone in Sigma´s growth strategy. With this acquisition, Sigma will become a meaningful player in the U.S. refrigerated processed meats market with an important presence in the U.S. Hispanic market.
Aug 11 2010 --- ALFA, S.A.B. de C.V., parent company of Sigma Alimentos, S.A. de C.V., announced Sigma has acquired Bar-S Foods Co. (Bar-S), a leader in the U.S. packaged meat business. The amount of the consideration paid by Sigma was not disclosed. The acquisition was made through the merger of Bar-S and Sigma’s U.S. operations.
Bar-S is a privately owned company founded in 1981 and headquartered in Phoenix, Arizona. It produces and markets processed meats throughout the United States. The company operates three production plants and one distribution center in Oklahoma. Its product line includes franks, lunchmeats, bacon, dinner sausages and corn dogs, all sold nationwide under the Bar-S brand. In 2009, Bar-S posted sales of U.S. $535 million and employed more than 1,600 people.
Commenting on the transaction, Armando Garza Sada, ALFA’s Chairman of the Board, stated: “This is an important milestone in Sigma´s growth strategy. With this acquisition, Sigma will become a meaningful player in the U.S. refrigerated processed meats market with an important presence in the U.S. Hispanic market.”
Alvaro Fernandez, President of ALFA said: “By combining Sigma’s U.S. operations and Bar-S into a single company, we will be able to generate additional value for our shareholders.” Speaking about the new entity, Mario Paez, Sigma’s President commented: “Our competitive position will be stronger once we add Bar-S’ operational efficiencies and national sales organization to Sigma’s R&D and innovation capabilities.”
The closing of this transaction is subject to necessary regulatory approvals from U.S. authorities, and fulfilling certain conditions.
