Pilgrim’s Pride has announced the acquisition of poultry and prepared foods supplier Moy Park from JBS for $1.3 billion (£1bn).
But the sale keeps it within the JBS empire. JBS owns 78.6 per cent of Pilgrim’s Pride, and appoints a number of directors to the US-based group’s board.
Pilgrim’s Pride said the transaction was approved by a ‘special committee’ elected by the shareholders not affiliated with JBS.
Bill Lovette, Pilgrim’s Pride chief executive said it would position the company as a global power with an ‘improved and more stable margin profile on the chicken business and an expanded portfolio of prepared foods’.
He added it gave the company access to the ‘attractive’ UK and European markets as part of a strategy to become a more global business whilst reducing volatility. Moy Park processes more than 5.7m birds per week with 13 processing plants across Europe.
“We will have new business opportunities through the addition of Moy Park’s fully integrated poultry production platform and its strong presence in prepared foods.
“Moy Park strengthens Pilgrim’s’ leading portfolio of brands and brings strong value-added innovation capabilities, access to new markets, a best-in- class production platform and strong farmer partner relationships.
“In addition, Moy Park shares Pilgrim’s long-standing commitment to become the best and most respected company in our industry.”