Pilgrim’s Pride Corporation has today announced it has acquired Northern Ireland-based poultry producer Moy Park from JBS in a deal worth £1 billion.
Moy Park processes more than 5.7 million birds per week and has 13 processing plants located in the UK, Ireland, France and the Netherlands, supplying major food retailers and restaurant chains in the UK and Europe.
Pilgrim’s anticipates incremental annual revenue of approximately $2 billion as a result of the transaction. It also expects to achieve approximately $50 million in annualised synergies over the next two years, primarily from the optimisation of sourcing and production, and cost savings in purchasing, production and logistics.
JBS, which is also Pilgrim’s Pride biggest shareholder, announced in June it would sell Moy Park as part of an extensive divestment programme it hoped would raise $1.8 billion. Earlier in the year, owner of JBS, J&F Investimentos, agreed to pay a record $3.2 billion fine for its role in corruptions scandals. Its owners claimed that they had spent $184 million to bribe nearly 1,900 politicians.
Pilgrim’s CEO Bill Lovette believes the acquisition will allow Pilgrim’s to become a ‘global player’, with a more stable margin profile and an expanded portfolio of prepared foods.
“The acquisition gives us access to the attractive UK and European markets, which advances our strategy of diversifying our portfolio to be more global while reducing volatility across our businesses,” he said.
“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.”
Moy Park chief executive Janet McCollum added: “This announcement is a positive development for Moy Park and all our colleagues employed across the business. Pilgrim’s is one of the leading chicken producers in the world with a proven track record and we see great opportunities for Moy Park as part of this successful business.
“Joining Pilgrim’s gives us the opportunity to accelerate our growth plans, share best practices and leverage Pilgrim’s expertise and operational excellence. 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. Both Moy Park and Pilgrim’s have a long heritage in agriculture and poultry production going back over 70 years and we share the same values.”
Moy Park will remain headquartered in Craigavon, Northern Ireland. The Moy Park management team, led by Janet McCollum, will continue to lead the business, and the rest of its employee base will remain in place. Pilgrim’s said Moy Park will operate as a business unit within Pilgrim’s and will maintain its day-to-day operations and strategic focus.
Pilgrim’s employs approximately 42,000 people and operates chicken processing plants and prepared-food facilities in 14 states in America, Puerto Rico and Mexico.
© FoodBev Media Ltd 2017