World's leading chicken company

World's leading chicken company

TEXAS, Pittsburg and Atlanta Pilgrim's Pride and Gold Kist announce merger agreement

Pilgrim's Pride Corporation and Gold Kist Inc. today announced that the two companies have entered into a definitive merger agreement under which 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 combined company will have a broad geographic reach and customer base, while maintaining a balanced portfolio of fresh chicken and value-added products. In particular, the enhanced geographic diversification will enable the new Pilgrim's Pride to compete more efficiently both in the U.S. and internationally.

Pilgrim's Pride expects to achieve approximately $50 million of annualised synergies, primarily from the optimisation of production and distribution facilities and cost savings in purchasing, production, logistics and SG&A. It is expected that the acquisition will be accretive to the company's diluted earnings per share after the first full year of operations.

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