Pilgrim''s Pride, the JBS purchase Moy Park, the same group, for $ $1.3 bi

The American chicken meat processor Pilgrim''s Pride, owned by JBS group, announced the purchase of Moy Park, also from Irish JBS, for $ $1.3 billion. The deal will be financed by a combination of cash, credit usage and subordinate financing notes, according to Pilgrim''s. The transaction evaluates the capital of Moy Park at about $ $1 billion, according to the company.
In a statement, the Pilgrim''s clarified that the operation has been approved unanimously by a Special Committee "formed entirely by independent directors elected to the Board in a vote controlled by shareholders not affiliated to the JBS". In 2009, JBS became majority stockholder of Pilgrim''s by acquiring a controlling share for $ $2.8 billion.
According to the Chief Executive of Pilgrim''s, Bill Lovette, the purchase of Moy Park is aligned with the goals of global expansion of the company. "The acquisition gives us access to attractive markets in the United Kingdom and Europe, which is a breakthrough in our portfolio diversification strategy to become more globalized while we reduce the volatility in our business," said Lovette, in a statement.
The Moy Park provides 25 percent of the chicken consumed in Western Europe, according to the company Web site, which is one of the 10 largest food companies in the United Kingdom, having 13 processing and production units in Northern Ireland, England, France, Netherlands and Ireland.
The Moy Park is among the assets offered for sale by JBS to help your holding, J&F Investments, to pay for a huge fine after the company engage in a major corruption scandal in Brazil. On 20 June, JBS announced a plan of divestiture that would allow up to R $6 billion.
The purchase of Moy Park by Pilgrim''s Pride will allow the company to maintain a solid financial performance, with diversified assets and a portfolio of innovative products, aligned with your intention to open the capital of one of its subsidiaries in the United States, "says JBS on statement.
According to JBS, the transaction will also create a more efficient corporate structure. "The Pilgrim''s leadership is prepared to extract even more value from the Moy Park, considering your history of successful integration of the assets of Tyson de Mexico and GNP, in addition to the strong performance of its existing assets," he says.
According to JBS, the funds obtained from the transaction will be used to repay short-term debt in Brazil, improving your debt and liquidity profile.
The sale is part of the divestment programme announced in the day June 20, of assets that provides for the entry of R $6 billions of resources, with the sale of the stake to 19.2% in Existing Food company s.a., which has already been announced, the sale of the stake in Moy Park and the assets of the Five Rivers Cattle Feeding and farms, in the United States and Canada.