Tyson Foods  has agreed to acquire U.S.-based chicken processor Keystone Foods from Brazilian meatpacker Marfrig Global Foods S.A. for $2.5 billion, according to a Reuters report. Marfrig announced plans to sell U.S.-based Keystone Foods in May.

The Brazilian Marfrig Group, has been seeking bids for it subsidiary U.S.- based Keystone Foods.  Last month, Marfrig said it was evaluating bids from Tyson Foods, Cargill, and George’s.  Marfrig has been  seeking to reduce its financial leverage after its acquisition of a 51-percent stake in the National Beef Packing Company for $969 million. Marfrig Global Foods purchased Keystone for $1.26 billion in 2010.

The agreement was signed by Marfrig’s controlling shareholder Marcos Molina on Thursday evening,  sources said, asking for anonymity because they were not authorized to discuss the matter publicly. Marfrig and Tyson have not immediately responded to requests for comment.
Keystone, based in West Chester, PA operates 25 manufacturing facilities in six countries across North America, Asia, Australia, the Middle East, and Africa.  Keystone is the largest supplier of chicken nuggets to McDonald’s.  Earlier this year, Tyson President and CEO Tom Hayes said the company is seeking more acquisitions to grow its geographic reach.  Hayes also said it was eyeing expansions to its global footprint by adding operations and increasing exports.