Sigma Alimentos to acquire Bar-S Foods
by Keith Nunes
MONTERREY, MEXICO — Mexican diversified food processor Sigma Alimentos, a division of ALFA, S.A.B., de C.V., plans to acquire processed meat manufacturer Bar-S Foods, Phoenix. Financial terms of the agreement were not disclosed.
“This is an important milestone in Sigma’s growth strategy,” said Armando Garza Sada, chairman of the board for ALFA. “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.”
Bar-S Foods is a privately held company that processes 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 under the Bar-S brand. In 2009, Bar-S posted sales of $535 million and employed more than 1,600 people.
Sigma Alimentos’ core business is in the Mexican refrigerated food business. Besides Mexico, Sigma is present in the U.S. Hispanic market, South and Central America and the Caribbean. It operates 31 facilities and 144 distribution centers with product offerings of processed meats, cheese, yogurt and other refrigerated products. In 2009, Sigma reported sales of $2,186 million and employed more than 30,000 people.
Closing of the transaction is subject to customary regulatory approvals.