£ 680million acquisition will increase the diversity of Pilgrim’s portfolio
The company will hold a conference call today at 5 p.m. ET
GREELEY, Colorado, June 17, 2021 (GLOBE NEWSWIRE) – Pilgrim’s Pride Corporation (Nasdaq: PPC) (“Pilgrim’s” or the “Company”) today announced that it has signed an acquisition agreement to acquire the Meat and meals (the “Acquisition”) of Kerry Consumer Foods in the United Kingdom and Ireland. Following the acquisition, Pilgrim’s will be a leading food company, with a significant value-added protein and integrated prepared foods business, anchored by a strong brand portfolio.
The acquisition, which was unanimously approved by Pilgrim’s board of directors, values the acquired businesses at an enterprise value of £ 680 million (or approximately $ 952 million based on a exchange rate of 1.40 USD / GBP as of June 16, 2021). The purchase amount represents a multiple of 8.5 times the implied stand-alone EBITDA for 2021.
“We are delighted to have the opportunity to position Pilgrim’s as a leading player in prepared foods and branded products through the acquisition of the Meat & Meals business of Kerry Consumer Foods,” said Fabio Sandri, CEO of Pilgrim’s. “The transaction enhances our value-added portfolio by adding market-leading brands such as Denny, Richmond and Fridge Raiders, which are expected to offer a higher and more stable margin profile. “
“We look forward to welcoming the talented management team of Kerry Consumer Foods’ Meats and Meals and other team members, led by Nick Robinson, to the Pilgrim’s family, and we look forward to working together to boost growth and create value for all our stakeholders, ”Sandri continued.
“Pilgrim’s has agreed to acquire a leader in ready-to-serve food solutions that sells across a wide range of channels and customers, a portfolio of innovative and market-leading brands, and a strong team of dedicated people.” said Nick Robinson, Kerry Consumer Foods’ CEO. “Our businesses share a rich heritage in food production with aligned values that put people and customers at the heart of everything we do. We look forward to working with our new colleagues to build on the fantastic progress of these companies and realize our combined growth opportunities as we enter an exciting new phase. “
Kerry Meats is a leading manufacturer of brand and private label meats, meat snacks and take out products in the UK and Ireland. Kerry Meals is one of the UK’s leading ethnic chilled and frozen ready meals companies. The combined companies generated over £ 725million in annual sales in the fiscal year ended December 31, 2020 and have over 4,500 team members. The Kerry team also has a proven track record of innovation with the successful launch of its branded meatless products.
“Pilgrim’s already has a strong position in the global protein market, and this complementary acquisition expands the ready-made and branded segment,” said Sandri. “The inclusion of Kerry Consumer Foods’ Meat & Meals business is part of our strategy of a well-balanced portfolio of products, geographies and customers. We believe that the acquisition will also allow the Company to develop new and innovative products through the combined expertise of the companies to support the growth objectives of our key customers.
The Acquisition is expected to be completed in the fourth quarter of 2021 and is subject to routine closing purchase price adjustments (including working capital and net debt adjustments), customary closing conditions and regulatory approvals. .
Conference Call Information
Pilgrim’s will host a conference call and webcast today, June 17 at 5 p.m. ET to discuss the transaction.
Participants are encouraged to pre-register for the conference call using the link below. Callers who pre-register will receive a unique PIN code to immediately access the call and bypass the live operator. Participants can pre-register at any time, including up to and after the call start time.
To pre-register, go to: https://services.choruscall.com/links/ppc210618.html
To access the conference call, please dial 1-844-883-3889 from within the United States or 1-412-317-9245 from outside the United States. in the investor section of the Pilgrim website at www.pilgrims.com under the heading “Events”. Please note that in order to submit a question to management during the call, you must be connected by phone. Replays of the conference call can be accessed by dialing 1-877-344-7529 from within the United States or 1-412-317-0088 from outside the United States. The replay confirmation code is 10157640. A replay will be available on the Pilgrim website for approximately two hours. after the end of the call and is accessible via the “Investor” section of www.pilgrims.com.
Rothschild & Co is acting as sole financial advisor to Pilgrim’s in connection with this transaction, and Freshfields Bruckhaus Deringer LLP and A&L Goodbody LLP are acting as legal advisers.
As a global food company with more than 58,000 team members, Pilgrim’s processes, prepares, packages and delivers fresh, frozen and value-added food products to customers in more than 100 countries. For more information, please visit www.pilgrims.com.
About the Kerry Group
Kerry is the world’s leading taste and nutrition partner for the food, beverage and pharmaceutical industries, innovating with customers to create great-tasting products, with improved nutrition and functionality, while delivering a better impact on the planet. Kerry’s in-depth consumer insight, global research and development team of more than 1,000 food scientists, and local manufacturing footprint in 31 countries enable it to co-create with customers in over 150 countries . Kerry is committed to being our customers’ most valuable partner, creating a world of sustainable nutrition, and will reach over 2 billion consumers with sustainable nutrition solutions by 2030. For more information, visit Kerrygroup.com .
Director, Investor Relations
Manager, Corporate Affairs
Statements in this press release which state the intentions, plans, hopes, beliefs, expectations, expectations or predictions of the future of Pilgrim’s Pride Corporation and its management are considered to be forward-looking statements. Without limiting the foregoing, words such as “plans”, “believes”, “estimates”, “expects”, “intends”, “may”, “plans”, “projects”, “should” , “Objectives”, “will” and the negative thereof and similar words and phrases are intended to identify forward-looking statements. It is important to note that actual results could differ materially from those projected in these forward-looking statements. Factors that could cause actual results to differ materially from those projected in these forward-looking statements include: the inability to complete the proposed transaction with the Kerry Group and to meet the closing conditions to complete the transaction; failure to recognize the anticipated benefits of the proposed transaction with the Kerry Group; the risks and impacts of recent and future cyber attacks; the impact of the COVID-19 pandemic, efforts to contain the pandemic and the resulting economic downturn on our operations and financial condition, including the risk that health and safety measures at production facilities of Pilgrim’s Pride may not be effective, the risk that we may be unable to prevent infection of our employees at these facilities, and the risk that we may have to temporarily shut down one or more of our production facilities; the risk that we will experience a decline in production and sales due to changing demand for food; the risk that we face a significant increase in late payments from our customers; and the additional risks associated with COVID-19 set out in our most recent Forms 10-K and 10-Q filed with the SEC; issues affecting the poultry industry in general; the ability to execute the Company’s business plan to achieve desired cost savings and profitability; future prices of feed ingredients and Company products; outbreaks of avian influenza or other diseases, whether in Pilgrim’s Pride flocks or elsewhere, affecting its ability to conduct business and / or demand for its poultry products; contamination of Pilgrim’s Pride products, which already has and may in the future lead to product liability claims and product recalls; exposure to risks related to product liability, product recalls, property damage and personal injury, for which insurance coverage is expensive, limited and potentially inadequate; management of cash resources; restrictions imposed by and as a result of the leverage effect of Pilgrim’s Pride; changes in laws or regulations affecting Pilgrim’s Pride operations or their application; new immigration laws or increased efforts to enforce existing immigration laws that increase the costs of doing business, cause Pilgrim’s Pride to change the way it does business or otherwise disrupt its operations; competitive factors and pricing pressures or the loss of one or more of Pilgrim’s Pride’s largest customers; fluctuations in exchange rates, trade barriers, exchange controls, expropriation and other risks associated with foreign operations; disruptions in international markets and distribution channels; and the impact of uncertainties from pending or future litigation and legal matters described in our most recent Forms 10-K and 10-Q, including the In re Broiler Chicken antitrust litigation, as well as other risks described under ” Risk Factors ”in the company’s annual report on Form 10-K, quarterly reports on Form 10-Q and subsequent filings with the Securities and Exchange Commission. The forward-looking statements in this press release speak only as of the date hereof, and the Company does not undertake to update these statements after the date of this press release, whether as a result of new information or developments. future or otherwise, except to the extent required by applicable law.