Saturday, August 1, 2015

Brazil owner slices Keystone Foods

McDonald's suppliers leave, not replaced

Brazil owner slices Keystone Foods

0 comments

Brazilian slaughterhouse and freezer giant Marfrig Alimentos SA bought West Philadelphia butcher's son and amateur sports patron Herb Lotman's Conshohocken-based fast-food supplier Keystone Foods, inventor of McDonald's Chicken McNugget, for $1.26 billion in 2010 from Lotman and investor Lindsay Goldberg LLC.

Keystone has been shrinking ever since. CEO Jerry Dean retired early, in May 2011. Marfrig brought in Campbell Soup Co. veteran Larry McWilliams as COO and Dean's heir-apparent, then sold off Keystone's trucking and warehouse arm to another McDonald's supplier, surprising Keystone veterans.

Then McWilliams left in April 2012, along with HR chief Leslie Billow. Controller/SVP Bill Hennessey left in September. Marfrig didn't replace them, but brought back ex-Keystone VP Bill Andersen, who McWilliams had removed, as Keystone's new COO. CFO John Coggins is currently running Keystone, for now.

What is Marfrig's plan? Company officials had no immediate response when I called and left messages. Ex-Cargill CFO Sergio Rial was named last month to head Marfrig's Seara division, which includes Keystone. The company ran deep into debt to for Keystone and other acquisitions; share values fell; it's currently trying to raise more money on the Brazilian stock market. Local employees are concerned over the future of the West Conshohcoken office and the West Chester lab. Will it be consolidated with Marfrig operations in Alabama?

0 comments
We encourage respectful comments but reserve the right to delete anything that doesn't contribute to an engaging dialogue.
Help us moderate this thread by flagging comments that violate our guidelines.

Comment policy:

Philly.com comments are intended to be civil, friendly conversations. Please treat other participants with respect and in a way that you would want to be treated. You are responsible for what you say. And please, stay on topic. If you see an objectionable post, please report it to us using the "Report Abuse" option.

Please note that comments are monitored by Philly.com staff. We reserve the right at all times to remove any information or materials that are unlawful, threatening, abusive, libelous, defamatory, obscene, vulgar, pornographic, profane, indecent or otherwise objectionable. Personal attacks, especially on other participants, are not permitted. We reserve the right to permanently block any user who violates these terms and conditions.

Additionally comments that are long, have multiple paragraph breaks, include code, or include hyperlinks may not be posted.

Read 0 comments
 
comments powered by Disqus
About this blog

PhillyDeals posts drafts, transcripts and updates of Joseph N. DiStefano's columns and stories about Philly-area business, which he's been writing since 1989.

DiStefano studied economics, history and a little engineering at Penn and taught writing at St. Joseph's. He has written thousands of columns and articles for the Inquirer, Bloomberg and other media, wrote the book Comcasted, and raised six children with his wife, who is a saint.

Reach Joseph N. at JoeD@phillynews.com, distefano251@gmail.com, 215.854.5194 or 302.652.2004.

Reach Joseph N. at JoeD@phillynews.com or 215 854 5194.

Joseph N. DiStefano
Also on Philly.com:
letter icon Newsletter