Key facts
- JBS proposed acquiring the remaining shares of U.S. poultry producer Pilgrim's Pride.
Brazil's JBS, the world's largest meatpacker, has made a new offer to acquire the remaining shares of U.S. poultry producer Pilgrim's Pride, aiming for full control and delisting. The proposal values the U.S. company at approximately $6.78 billion.
The acquisition would consolidate JBS's control over Pilgrim's Pride, potentially impacting market dynamics in the U.S. poultry industry and JBS's global operations.
Brazil's JBS, the world's largest meatpacker, has made a fresh attempt to buy the remaining shares of U.S. poultry producer Pilgrim's Pride, aiming for full control and a delisting. JBS, which already owns about 82% of Pilgrim's Pride, offered 2.086 JBS Class A shares for each Pilgrim's Pride share, valuing the bid at $28.49 per share, which equates to approximately $6.78 billion for the entire company. This proposal is contingent upon review and approval from a committee of Pilgrim's Pride's independent directors and its minority shareholders. The development follows JBS's recent agreement to form a joint venture with Indonesia's sovereign wealth fund, Danantara, for protein production investments. Pilgrim's Pride recently 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.