The world's largest meatpacker, JBS SA, wants to acquire the remaining common shares in its U.S.-based subsidiary Pilgrim's Pride Corp. in order to delist the company.
JBS plans to buy rest of Pilgrim's Pride shares, make it private
The move comes the same week Cargill formed a joint venture to buy another poultry business, Sanderson Farms.
August 13, 2021 at 6:57PM
Brazil-based JBS said in a securities filing that its board had approved an offer letter to be sent to Pilgrim's Pride to acquire the remaining shares in circulation for $26.50 per share.
That would make the deal worth over $1 billion, according to the Wall Street Journal.
JBS already owns via subsidiaries a 80.21% stake in Pilgrim's Pride, which processes chicken and pork sold in North America and Europe. The Brazilian firm had agreed to buy a majority stake in Pilgrim's Pride in 2009.
Pilgrim's Pride, among the top five poultry companies in the U.S., operates a processing plant in Cold Spring, Minn.
The move comes the same week that Minnetonka-based Cargill formed a joint venture with Continental Grain to buy Sanderson Farms, the country's third-largest chicken producer, for $4.53 billion, a deal reached amid surging poultry prices and fierce competition. Under that deal, Sanderson Farms also would become a private company.
JBS' proposed acquisition of the remaining shares in circulation must be approved by a special committee of Pilgrim's Pride board members as well as a majority of voting shares in the company.
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