Pilgrim's Pride (PPC) Acquires Kerry Consumer Foods, Expanding Growth of Euro Operations - Stephens
- U.S. stocks, dollar sluggish, all eyes on Fed meet this week
- Tesla (TSLA) Tops Q2 EPS by 49c, Revenues Beat
- Chinese Tech Stocks Crushed on Fresh Regulatory Pressure
- Nearly $1 Billion Bitcoin (BTC) Shorts Liquidated Today Amid Amazon (AMZN) Rumors
- Aon (AON) and Willis Towers Watson (WLTW) Mutually Agree to Terminate Combination Agreement
Get instant alerts when news breaks on your stocks. Claim your 1-week free trial to StreetInsider Premium here.
Stephens analyst Ben Bienvenu reiterated an Overweight rating and $28.00 price target on Pilgrim's Pride (NASDAQ: PPC) after the company announced that it has reached an agreement to acquire the Meats and Meals business of Kerry Consumer Foods in the UK and Ireland. The acquisition values the assets at $952 million, or 8.5x expected 2021 EBITDA. This transaction looks to be ~10% accretive to FY21 PPC EBITDA, 20c to 25c accretive to EPS in year one and a nice fit into the existing portfolio in Europe. The deal is expected to close in 4Q21.
The analyst stated "While this business has been stable historically, with minimal growth, it also brings higher and more stable margins to the table for PPC, which is a nice complement to the core business. Additionally, while synergies are not a significant portion of the transaction rationale, there is the opportunity to achieve back office and integration related synergies over the next few years."
Shares of Pilgrim's Pride closed at $21.61 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- PerkinElmer (PKI) Acquires BioLegend for $5.25B
- Entree Resources Ltd. (ETG:CN) (EGI) PT Raised to Cdn$1.10 at TD Securities
- BB Seguridade (BBSE3:BZ) (BBSEY) PT Lowered to R$29 at Goldman Sachs
Create E-mail Alert Related CategoriesAnalyst Comments
Related EntitiesDefinitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!