CELAYA, Mexico, Dec. 18 /PRNewswire-FirstCall/ -- ("Bachoco" or "the Company") (NYSE: IBA; BMV: Bachoco B), Mexico's leading producer and processor of poultry products, today announced that it has reached an agreement with "Grupo Agra", a table eggs company located in the states of Nuevo Leon and Coahuila in Northeast Mexico. The agreement establishes a rent scheme of the facilities, which include laying hens farms with a capacity of approximately 1.0 million hens, a table eggs processing plant, distribution centers, and the Agra brands. In addition, Bachoco will acquire all the working capital.
Cristobal Mondragon, Industrias Bachoco CEO, said, "This agreement brings flexibility to our business and reinforces our table eggs business line in the northeast market of the country. We will immediately focus on the integration of this operation with our table eggs operation located in the state of Coahuila and take advantage of synergies."
The agreement will be financed with internal resources and Bachoco will take control of the facilities immediately.
Company Description
Industrias Bachoco S.A.B. de C.V. (also referred to in this report as Bachoco or the Company) was founded by the Robinson Bours family in 1952, in the state of Sonora. Since then, it has grown into the largest poultry company in Mexico, with over 700 production and distribution facilities currently organized in seven complexes throughout the country. Bachoco's main business lines are chicken, eggs, and swine, and the Company is also an important player in the balanced feed industry in Mexico. The Company's headquarters are based in Celaya, Guanajuato, located in Mexico's central region.
Industrias Bachoco made an initial public stock offering in September 1997. Its securities are listed and traded on the Mexican Stock Exchange (Bolsa Mexicana de Valores or BMV) under the ticker symbol Bachoco B, and on the New York Stock Exchange (NYSE) under the ticker symbol IBA.
The Company posted net sales of U.S. $1.39 billion for 2006, divided among the Company's four main product lines as follows: 77.6% chicken, 9.2% table eggs, 9.0% balanced feed, and 4.2% swine and other lines.
Industrias Bachoco's shares are listed on the Mexican Stock Exchange and its American Depositary Shares (ADS) are listed on the New York Stock Exchange. One ADS represents twelve B Shares. For more information, please visit Bachoco's website at http://www.bachoco.com.mx/.
This press release contains certain forward-looking statements that are subject to a number of uncertainties, assumptions and risk factors that may influence its accuracy. Actual results may differ. Factors that could cause these projections to differ, include, but are not limited to: supply and demand, industry competition, environmental risks, economic and financial market conditions in Mexico and operating cost estimates. For more information regarding Bachoco and its outlook, please contact the Company's Investor Relations Department.
