GREELEY — Chicken processor Pilgrim’s Pride Corp. (Nasdaq: PPC) said Friday it has completed the deal to acquire Minnesota-based GNP Co. for $350 million in cash.
The deal was announced Nov. 29.
GNP Co, is a provider of premium branded chicken products in the Upper Midwest. The deal gives Greeley-based Pilgrim’s control of GNP Co.’s Just Bare Certified Organic and Natural/American Human Certified/No-Antibiotics-Ever product lines, adding to Pilgrim’s own NAE and organic production.
The deal is expected to provide $20 million in annual cost-savings, primarily from the optimization of production and distribution, and cost-savings in purchasing, production, logistics and selling, general and administration, Pilgrim’s officials said.
Pilgrim’s officials said the acquisition is complementary in that it adds facilities in areas where Pilgrim’s doesn’t currently operate as well as differentiated branded products. GNP Co. also brings expertise in various technologies that Pilgrim’s will be able to adopt in its existing facilities.
Pilgrim’s employs approximately 38,200 people and operates chicken-processing plants and prepared-foods facilities in 12 states, Puerto Rico and Mexico. The Company’s primary distribution is through retailers and foodservice distributors.