Brazil's JBS, the world's largest meatpacker, has proposed acquiring the remaining shares of U.S. poultry producer Pilgrim's Pride, in which it already holds an 82% stake. The offer values Pilgrim's Pride at approximately $6.78 billion.
The proposed acquisition would consolidate JBS's control over Pilgrim's Pride, potentially streamlining operations and strategic decisions within the global poultry market. It also highlights JBS's ongoing expansion and investment activities despite recent financial headwinds.
JBS, the world's largest meatpacker, has proposed acquiring the remaining shares of U.S. poultry producer Pilgrim's Pride, a move that would give the Brazilian company full control of its subsidiary. The offer, made on Tuesday, involves exchanging 2.086 JBS Class A shares for each Pilgrim's Pride share, valuing the U.S. company at approximately $6.78 billion based on its market capitalization. JBS already holds an 82% stake in Pilgrim's Pride.
The proposal is contingent upon review and approval from a committee of Pilgrim's Pride's independent directors and its minority shareholders. This development follows JBS's recent agreement to form a joint venture with Indonesia's sovereign wealth fund, Danantara, for protein production investments. It also comes shortly after Pilgrim's Pride announced its own acquisition of Walker's Deli & Sausage Company for about $142 million.
Earlier in August, JBS reported an unexpected quarterly net loss, attributed to an antitrust settlement and debt tender offers, compounded by tight cattle supplies impacting its U.S. beef operations. Pilgrim's Pride also experienced lower quarterly sales due to softer chicken demand.