Poultry processor Pilgrim’s may have lost out on its chance to acquire meat products company Hillshire Brands, but the company is continuing to look at other acquisition possibilities. Pigrim’s is now looking to expand its poultry operations by acquiring poultry operations in regions where Pilgrim’s has little to no presence.
Pilgrim's, owned by Brazilian meat and poultry processor JBS SA, is also looking at other processed meat businesses.
Pilgrim’s, which ranks second to Tyson Foods as the largest poultry processor in the United States, had offered to pay $7.7 billion for Hillshire Brands, but has since withdrawn its offer after rival poultry processor Tyson Foods offered to purchase the company for $8.55 billion.
Pilgrim’s CEO Bill Lovette said trying to top the Tyson offer of $8.55 billion would have been “inconsistent with our disciplined approach” to acquisitions, according to a Wall Street Journal report. "We will continue to pursue more attractive options that add value to our shareholders and strengthen our strategic position in the market," Lovette said.
Hillshire's plans still pending
Tyson and Pilgrim’s both offered to purchase Hillshire Brands, parent company to brands like Jimmy Dean, State Fair and Ball Park, under the condition that it not go forward with its pending $4.3 billion purchase of Pinnacle Foods, parent company of Vlasic, Hungry-Man and Armour.
The board for Hillshire Brands on June 16 recommended to its stockholders that the Hillshire-Pinnacle transaction be terminated. A vote to terminate that deal has not yet occurred.