Beef processor JBS raises stake in Pilgrim's
Acquisition shows confidence in US chicken sector, says JBS
Brazil beef processor JBS SA has raised its stake in affiliate Pilgrim's Corp. by $107.2 million, purchasing the company's remaining stock belonging to founder Lonnie Pilgrim at $5.69 per share, according to reports.
The purchase has increased JBS's investment in Pilgrim's from 68 percent to 75.3 percent. "This acquisition represents another show of confidence in the U.S. chicken sector," said Jeremiah O'Callaghan, head of investor relations for JBS. "With low costs and growing exports from that country, JBS believes there is great potential to raise margins."
Pilgrim's lost nearly $500 million in 2011 as the company struggled with rising feed costs and weak chicken prices.