Pilgrim’s Pride, the second-largest U.S. poultry processor, will buy the European poultry producer Moy Park for $1.3 billion in a deal that its chief executive says will “position Pilgrim’s to become a global player,” reported Agrimoney. Moy Park claims a 25-percent share of the chicken market in western Europe.
Somewhat dizzyingly, the transaction “keeps Moy Park within the empire of JBS,” said Agrimoney. The scandal-marred Brazilian meatpacker holds a 77-percent share of Pilgrim’s Pride through its arm JBS USA. The Brazilian company put Moy Park on the market in June to raise money to pay a huge corruption fine. JBS purchased Moy Park two years ago for $1.5 billion. JBS also said in June that it would sell its U.S. cattle feeding operation with feedlots in six western states that can hold 980,000 head.
Bill Lovette, chief executive of Pilgrim’s Pride, said the acquisition of Moy Park will “position Pilgrim’s to become a global player. The company now has operations in Mexico and the United States. After the transaction, Moy Park would generate one-fifth of Pilgrim’s revenue. Agrimoney quoted Lovette as saying, “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.”