Pilgrim's Pride announced merger with Gold Ki...

Pilgrim's Pride announced merger with Gold Kist

Pilgrim's Pride Corporation and Gold Kist Inc. announced that the two companies have entered into a definitive merger agreement.

According to the agreement Pilgrim's Pride will acquire all of the outstanding shares of Gold Kist common stock for $21.00 per share in cash. The transaction, which was unanimously approved by the boards of directors of both Pilgrim's Pride and Gold Kist, has a total equity value of approximately $1.1 billion, plus the assumption of approximately $144 million of Gold Kist's debt.

Together, Pilgrim's Pride and Gold Kist will create the world's leading chicken company in terms of production and the third-largest U.S. meat protein company by revenues.

The new company will be characterised by a balanced portfolio of fresh chicken and value-added products and will be able to compete more efficiently both in the U.S. and internationally.

Pilgrim's Pride expects to achieve approximately $50 million of annualized synergies, primarily from the optimization of production and distribution facilities and cost savings in purchasing, production, logistics and SG&A.

Source: Pilgrim's Pride

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