The Department of Justice and the Federal Trading Commission have approved the majority sale of Pilgrim's Pride Corp. to Brazilian beef packer JBS SA. Pilgrim's Pride and six of it subsidiaries filed a reorganization plan in September with the U.S. Bankruptcy Court for the Northern District of Texas and is now selling 64% of the reorganized company shares to JBS.
Existing stockholders will receive shares in the remaining 36%, worth $450 million. As part of the deal, JBS will pay off Pilgrim's Pride creditors in full. According to JBS the entire transaction is worth $2.8 billion.
The deal gives JBS control of the largest U.S. chicken producer that had about 23% of the U.S. chicken market before filing for bankruptcy protection. Pilgrim's Pride anticipates the court approving their reorganization plans in time for it to exit bankruptcy protection by the end of the year.
"As a successful beef and pork processor, we believe we are well positioned to bring the same competitive energy to Pilgrim's Pride," said JBS USA CEO and President Wesley M. Batista.
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