Pilgrim’s Pride has successfully completed its US$1.1bn takeover of rival Gold Kist, becoming the world’s largest chicken processor. Gold Kist is now a wholly owned subsidiary of the chicken group.
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The news comes a day after Pilgrim’s Pride announced that it has successfully completed a tender offer that saw the company acquire 92% of Gold Kist’s outstanding common stock. All remaining outstanding shares of Gold Kist have been converted into the right to receive $21 a share in cash.
The transaction was unanimously approved by the directors of both Pittsburg, Texas-based Pilgrim’s Pride and Atlanta, Georgia-based Gold Kist. The deal has a total equity value of about $1.1bn, plus the assumption or refinancing of approximately $144m of Gold Kist’s debt.
“We are extremely pleased that the final step in our successful acquisition of Gold Kist has now been completed,” said Lonnie “Bo” Pilgrim, chairman of Pilgrim’s Pride. “We begin 2007 as the preeminent player in the chicken industry, positioned for long-term growth, leadership and value creation for our customers and stockholders.”
Pilgrim’s Pride posted a net loss of $34.2m on revenues of $5.2bn in fiscal 2006.
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By GlobalDataShares in Pilgrim’s Pride closed up $0.37 to close at $29.44 on the New York stock exchange following the announcement yesterday (9 January), while Gold Kist shares fell $0.08 to close at $20.97 on the Nasdaq.
