Pilgrim’s Pride to acquire Kerry’s Meats and Meals division

Pilgrim’s Pride reached an agreement with the Kerry Group to purchase its Consumer Foods’ Meats and Meals business in the U.K. and Ireland.

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Mariusz Blach | Fotolia.com;
Mariusz Blach | Fotolia.com;

Pilgrim’s Pride reached an agreement with the Kerry Group to purchase its Consumer Foods’ Meats and Meals business in the U.K. and Ireland.

The deal, which was announced June 17, makes Pilgrim “a leading food company, with a significant value-added protein and integrated prepared foods business anchored by a portfolio of strong brands,” according to an announcement from the company.

“We are pleased to have the opportunity to position Pilgrim’s as a leading prepared foods and branded products player through the acquisition of Kerry Consumer Foods’ Meats and Meals business,” said Fabio Sandri, Pilgrim’s’ Chief Executive Officer. 

“The transaction enhances our value-added portfolio by adding market-leading brands such as Denny, Richmond and Fridge Raiders, which we expect to deliver a higher and more stable margin profile.”

The Kerry Group’s Consumer Foods’ Meats and Meals business is valued at £680 million (US$952 million), approximately 8.5x multiple on implied expected standalone EBITDA for 2021. Kerry Meats is a manufacturer of branded and private labels meats, meat snacks and food-to-go products in the U.K. and Ireland, as well as ethnic chilled and frozen ready meals business in the U.K.

“Pilgrim’s has agreed to acquire a leader in convenience foods solutions that sells into a wide breadth of channels and customers, a portfolio of innovative and market-leading brands, and a strong team of dedicated people,” said Nick Robinson, Kerry Consumer Foods’ Chief Executive Officer. 

“Our companies share a rich heritage in food production with aligned values that put people and customers at the heart of all we do. We look forward to working with our new colleagues to build upon the fantastic progress of these businesses and realize our combined growth opportunities as we enter an exciting new phase.”

Following the closing, the Kerry Group plans continued strategic development of its Taste and Nutrition business.

The acquisition is expected to close in the fourth quarter of 2021, subject to routine closing purchase price adjustments, customary closing conditions and regulatory conditions.

Pilgrim’s Pride, according to the WATTPoultry.com Top Companies Database, is the second largest broiler producer in the United States. The company slaughtered 30.5 million head of broilers and processed 161.66 million pounds of ready-to-cook chicken on a weekly basis in 2020.

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