Pilgrim's has completed its acquisition of Minnesota-based poultry processor GNP Company.
The acquisition was completed on January 6 in an all-cash, $350 million transaction, according to a press release issued by Pilgrim’s.
Pilgrim’s first announced its intent to acquire GNP Company, with its product lines Gold’n Plump and Just BARE, in November 2016. At the time, GNP Company was owned by the Maschhoffs, a family-owned company primarily known for pig production. The Maschhoffs acquired GNP Company in 2013.
Pilgrim’s CEO Bill Lovette touted GNP Company for its “state-of-the art assets in geographic areas where Pilgrim’s is not currently present, providing Pilgrim’s the opportunity to expand our production and customer basis while maintaining our high standards for quality service and great-tasting products.”
GNP transaction increases Pilgrim’s antibiotic-free poultry production
During a conference call on November 30, Lovette said the acquisition will help Pilgrim’s move more quickly toward its goal of having one quarter of its broiler production raised without antibiotics in 2019. The Just BARE brand is already raised with no antibiotics ever, while Gold’n Plump is transitioning into a raised without antibiotics brand.
Lovette estimated that between the moves Pilgrim’s has made to transition into increased antibiotic-free chicken production, and the raised without antibiotics volumes offered by GNP company, Pilgrim’s will have roughly 24 percent of its chicken production raised without antibiotics. He said about 21 percent of that will be due to Pilgrim’s existing operations, with the other 3 percent coming from GNP Company’s operations.
Lovette also indicated at the time that the Just BARE line could become the company's national go-to-market brand at retail.
Acquisition increases Pilgrim’s processing capacity
According to the WATTAgNet Top Poultry Companies Database, Pilgrim’s is the second largest broiler company in the United States, processing 141.67 million pounds of ready-to-cook chicken on a weekly basis in 2015. GNP Company is the 19th largest broiler company in the U.S., having processed 8.79 million pounds of ready-to-cook chicken on a weekly basis in 2015.
The additional capacity, however, will not be quite enough for Pilgrim’s to surpass Tyson Foods as the largest broiler company in the United States.
