Proud of that Poultry

Chuck Zimmerman

Pilgrim's PrideHere’s some big news for all you chicken lovers out there. Pilgrim’s Pride and Gold Kist have agreed to a merger. Now that’s a lot of poultry.

Pilgrim’s Pride Corporation and Gold Kist Inc. today announced that the two companies have entered into a definitive merger agreement under which Pilgrim’s Pride will acquire all of the outstanding shares of Gold Kist common stock for $21.00 per share in cash. The transaction, which was unanimously approved by the boards of directors of both Pilgrim’s Pride and Gold Kist, has a total equity value of approximately $1.1 billion, plus the assumption of approximately $144 million of Gold Kist’s debt.

Gold KistTogether, Pilgrim’s Pride and Gold Kist will create the world’s leading chicken company in terms of production and the third-largest U.S. meat protein company by revenues. The combined company will have a broad geographic reach and customer base, while maintaining a balanced portfolio of fresh chicken and value-added products. In particular, the enhanced geographic diversification will enable the new Pilgrim’s Pride to compete more efficiently both in the U.S. and internationally.

It’s interesting that the top story on the Gold Kist website is one in which the company recommends to stockholders not to accept Pilgrim’s Pride’s offer. I think they need to update that don’t you think? Over on the Pilgrim’s Pride website they already have the release posted.

Agribusiness, Livestock, Poultry