Purchase fortifies Pilgrim's poultry prowess
Nov 25, 2003 12:00 PM, from staff and wire reportsPilgrim's Pride Corp has completed its acquisition of the chicken division of ConAgra Foods Inc.
The purchase price is based on the adjusted net book value of the ConAgra chicken division on the closing dateÑestimated at $546.8 million. This price consisted of some 25.4 million shares of common stock and approximately $300.8 million in cash.
As a result, Pilgrim's Pride is now the nation's second-largest chicken company with pro forma annual net sales of roughly $5 billion. The acquisition adds several brands to its portfolio, including Pierce, Country Pride, Easy-Entree, and To-Ricos, and will expand PilgrimÕs Pride's prepared foods chicken division. Before the acquisition, this division had annual net sales of about $921 million and has grown at an average annual rate of more than 13% for the past five years.
Additionally, Pilgrim's Pride is now a preferred supplier of chicken products to ConAgra.