Pilgrim's Pride (PPC) to Acquire Tyson's (TSN) Mexican Poultry Business in $400M Deal

Pilgrim's Pride (Nasdaq: PPC) announced that a definitive agreement has been entered to purchase the totality of the poultry businesses of Tyson Foods, Inc. (NYSE: TSN) in Mexico. Pilgrim's Pride, is majority owned by JBS USA Holdings, Inc., a wholly owned subsidiary of JBS S.A.

The transaction is valued at US$400 million and will be paid for in cash, pending regulatory approvals by the competent authorities. Pilgrim's Pride Mexico anticipates incremental annual revenue of approximately $650 million as a result of the transaction.

Tyson de México, a vertically integrated poultry business based in Gomez Palacio in North Central México, has operated for more than 20 years. The company includes three plants, seven distribution centers and employs more than 5,400 team members.

"Today's announcement demonstrates Pilgrim's continued commitment to our growth strategy of disciplined acquisitions that add company value for our shareholders and strengthen our strategic position in the market," said Bill Lovette, President and CEO of Pilgrim's Pride Corporation.

Once the sale is completed, PPC currently expects to maintain the operations working to capacity with the existing workforce, maintaining labor contracts in place in both countries.

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