JBS makes fresh bid to acquire remaining Pilgrim’s Pride shares
JBS is seeking full ownership of Pilgrim’s Pride in a proposed stock-for-stock transaction that could simplify its corporate structure and remove the poultry company from Nasdaq.
USA – JBS has made a fresh move to take full control of US majority-owned subsidiary Pilgrim’s Pride, four years after withdrawing a previous proposal to acquire the remaining shares of the poultry producer.
The Brazilian meatpacker said it had submitted a non-binding proposal to the Pilgrim’s Pride board to acquire shares it does not already own. JBS currently holds about 82% of Pilgrim’s Pride through its US unit, JBS USA.
Under the proposal, Pilgrim’s Pride shareholders would receive 2.086 JBS Class A shares for each Pilgrim’s Pride share. If completed, the transaction would result in Pilgrim’s Pride being delisted from the Nasdaq stock exchange.
JBS acquired a majority stake in Pilgrim’s Pride in 2009 and attempted to purchase the remaining shares in 2021. The earlier proposal was an all-cash offer, but JBS later withdrew it after the companies failed to reach an agreement on price.
JBS said the latest transaction would create a simplified organisational structure by eliminating the costs associated with Pilgrim’s Pride operating as a standalone public company. The company said this would allow for more flexible and efficient capital allocation across the group.
The proposal will be reviewed by a special committee of independent Pilgrim’s Pride directors. It also requires approval from a majority of votes cast by unaffiliated Pilgrim’s Pride shareholders, alongside other customary closing conditions.
Pilgrim’s Pride has a market capitalization of about $6.8 billion. Its shares were down around 27% year to date and last week reached their lowest intraday level since February 2024.
The Greeley, Colorado-based company owns brands including Pilgrim’s Chicken, Just Bare, Gold’n Plump and Moy Park. Its operations serve global markets through production facilities in the US, UK, Puerto Rico, Mexico and Europe.
Earlier this week, Pilgrim’s Europe, part of Pilgrim’s Pride, agreed to acquire UK-based Walkers Deli & Sausage Company from Samworth Brothers for about $142 million.
The latest proposal follows leadership changes at JBS. Wesley Batista Filho was elevated to group CEO last week, while CEO Gilberto Tomazoni is set to become vice chairman of the JBS board.
Separately, JBS USA formed a joint venture earlier this month with Indonesia’s sovereign wealth fund to pursue investment opportunities in protein production across Indonesia, Southeast Asia, Australia and New Zealand.
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