Miami-based private equity firm H.I.G. Capital has sold Albertville Quality Foods to OK Foods, an Arkansas subsidiary of Mexican poultry processor Industrias Bachoco, the firm announced Monday.
Financial terms of the deal were not disclosed.
As a further processor, Albertville Quality Foods provides customized protein products such as breaded chicken tenders, boneless wings and frozen items to national restaurant chains and food service channels. For poultry, further processing refers to steps involving additional ingredients or heat application, such as marination, cooking or freezing.
Founded in 1988, the company operates two production facilities in Albertville, Alabama.
According to Bachoco’s statement, Albertville Quality Foods has annual sales of about $270 million.
OK Foods is an Arkansas-based integrated chicken producer that was founded as a livestock and poultry feed manufacturer in the 1930s and went on to be acquired by Mexican poultry producer Industrias Bachoco in 2011. In the years since its acquisition, OK Foods has purchased egg-hatching operations in Arkansas and Georgia and a fully-cooked chicken plant in Oklahoma in addition to remodeling its main processing plant in 2015.
“With this acquisition, we will continue with the growth of our operation in the United States, mainly with products of further processing,” Bachoco chief executive Rodolfo Ramos said in a statement. “We are confident that we will quickly integrate this company into our current operations and we will capitalize on the opportunities and synergies we have identified.”
H.I.G. bought Albertville Quality Foods in 2010, after working with the company’s management to purchase both it and a related sausage manufacturer, Southern Quality Meats. In 2012, Albertville Quality Foods purchased Sunrise Foods in a transaction that H.I.G. said at the time would add an additional $100 million in revenue to the combined company.
“This acquisition is the culmination of efforts to establish a leading position in the protein further processing sector,” said H.I.G. managing director Richard Stokes at the time.
In its statement Monday, H.I.G., which did return messages seeking further comment, said its investment period saw Albertville establish a new sourcing model, improve production facilities and form partnerships with unnamed leading restaurants and retailers.
H.I.G. has approximately $22 billion of equity capital commitments. Founded in 2003, the firm utilizes both debt and equity in its investments and maintains offices throughout the US, Europe and Latin America.
Last week, H.I.G. portfolio company ACG Materials announced its acquisition of Oklahoma-based gypsum provider, Diamond Gypsum for an undisclosed price and in March, the firm sold Canadian ice cube producer Arctic Glacier to The Carlyle Group for $723 million.