Pilgrim’s Pride acquires poultry-supplier Moy Park for $1.3 billion from JBS S.A.
September 12, 2017
Pilgrim's Pride Corp. acquired Moy Park, a poultry and prepared foods supplier with operations in the United Kingdom and Continental Europe, from JBS S.A. for about $1.3 billion, according to a news release from Pilgrim's Pride.
The acquisition of Moy Park will position Pilgrim's for an improved and more stable margin profile on the chicken business, Pilgrim's Pride CEO Bill Lovette said in the news release. It will give the company an expanded portfolio of prepared foods and give it access to U.K. and European markets, as well, he said.
"Following our successful acquisitions of GNP and the assets in Mexico, Moy Park represents a logical next step in the evolution of our geographical and brands footprint," Lovette said in the release. "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 Pilgrims' 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."
The transaction was unanimously approved by a special committee of the Pilgrim's board of directors, according to the release.
Moy Park is known for providing fresh, high-quality and locally farmed poultry products, according to the release. It is a top 10 U.K. food company and one of Europe's leading poultry producers with more than 800 farmers across the U.K. Moy Park processes more than 5.7 million birds per week and has 13 processing plants located in the U.K., Ireland, France and the Netherlands, the release stated.
Pilgrim's Pride anticipates incremental annual revenue of about $2 billion as a result of the transaction, and it expects to achieve about $50 million in savings over the next two years.
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"Joining Pilgrim's gives us the opportunity to accelerate our growth plans, share best practices and leverage Pilgrim's expertise and operational excellence," Janet McCollum, chief executive of Moy Park, said in the news release. "Moy Park will provide Pilgrim's with a platform for growth in Europe, as well as access to innovation and increased exposure to prepared foods."