By Brazil Stock Guide – By Brazil Stock Guide — JBS N.V. (NYSE: JBS; B3: JBSS32) has proposed acquiring the roughly 18% of Pilgrim’s Pride Corp. (NASDAQ: PPC) that it does not already own, a move that could bring the U.S.-listed poultry and prepared-foods company fully under JBS just as Pilgrim’s European business expands through another acquisition in the UK.
The proposal adds a broader strategic backdrop to Pilgrim’s Europe’s agreement to acquire Walkers Deli & Sausage Company, a British producer of premium pork products.
JBS currently owns approximately 82% of Pilgrim’s Pride. Under the non-binding proposal submitted to Pilgrim’s board, minority shareholders would receive 2.086 JBS Class A shares for each Pilgrim’s share, based on Aug. 18 closing prices of $13.66 for JBS and $28.49 for Pilgrim’s Pride.
The transaction would effectively eliminate Pilgrim’s minority public float and consolidate the company within JBS’s global platform.
Pilgrim’s could leave Nasdaq
JBS said the proposal must be evaluated and approved by a special committee of independent Pilgrim’s directors, supported by independent financial and legal advisers.
The company also expects the transaction to require approval from a majority of votes cast by Pilgrim’s shareholders unaffiliated with JBS. JBS shareholders would not need to vote on the deal. If completed, Pilgrim’s shares would cease trading on Nasdaq and their registration would be terminated.
JBS argues that the combination would give Pilgrim’s minority shareholders exposure to a larger and more diversified global protein and prepared-foods platform, while simplifying the corporate structure and eliminating costs associated with Pilgrim’s remaining a separately listed public company. It also pointed to the greater trading liquidity of JBS shares.
The proposal is non-binding, and there is no assurance that a definitive agreement will be reached.
Pilgrim’s Europe buys Walkers
Separately, Pilgrim’s Europe, the European arm of Pilgrim’s Pride, agreed to acquire Walkers Deli & Sausage Company, a British producer of premium pork products.
The transaction is subject to approval by the UK competition authority and completion of required employee consultation procedures. Financial terms were not disclosed.
Founded in 1824, Walkers operates four production facilities within a single complex in Leicester, England, and employs around 1,150 people.
Its portfolio includes premium sausages, sliced cooked meats, cooked bacon, ready-to-eat products and pâtés. The company supplies major UK retailers and has a strong presence in premium private-label products.
Focus on higher-value foods
Pilgrim’s said the acquisition will expand its presence in the British food market and strengthen its position in higher-value pork categories.
The companies already have a commercial relationship, with Pilgrim’s supplying part of the pork processed by Walkers.
“The deal strengthens our European platform, expands our capabilities in value-added foods and supports our long-term growth ambitions,” Pilgrim’s Chief Executive Officer Fabio Sandri said in a statement.
Ivan Siqueira, president of Pilgrim’s Europe, said the transaction should further integrate the company’s supply chain while increasing its exposure to premium pork products.
“Walkers is a fantastic business, with a proud history, a highly skilled team and a strong reputation for quality and innovation,” Siqueira said.
Samworth Brothers redirects investment
Samworth Brothers, Walkers’ current owner, said the divestment will allow it to focus investment on food supplied to the out-of-home market, savory bakery products, ready meals and private-label foods.
The group generates annual revenue of about £1.8 billion.
Expanding European platform
Pilgrim’s Europe operates more than 40 facilities across the UK, Ireland, France and the Netherlands, with businesses spanning chicken, pork, lamb and beef.
The Walkers acquisition therefore represents another step in Pilgrim’s push toward higher-value prepared foods in Europe.
At the same time, JBS’s proposal to absorb Pilgrim’s remaining minority shareholders could simplify the ownership structure behind that expansion. If successful, Pilgrim’s would cease to exist as a separately traded Nasdaq company and become fully owned by JBS, while former minority shareholders would receive shares in the Brazilian-controlled global food group.
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