Agribusiness  February 21, 2022

JBS withdraws offer for Pilgrim’s Pride shares

GREELEY — JBS SA, the Brazilian parent of JBS USA, based in Greeley, has withdrawn its bid to acquire all outstanding shares of Pilgrim’s Pride Corp. (Nasdaq: PPC), the Greeley-based poultry-processing company.

“JBS withdrew its offer after it was unable to come to an agreement with the Special Committee of the PPC Board of Directors regarding the terms of the proposed transaction,” JBS said in a press release.

JBS, which owns 80% of Pilgrim’s Pride, had offered to acquire the remaining outstanding shares last fall.

Pilgrim’s Pride said in a filing with the U.S. Securities and Exchange Commission that it in November had rejected a JBS offer of $28.50 per share, “concluding that the offer significantly undervalued the publicly owned shares of PPC.”

Pilgrim’s Pride said it had weighed several factors in rejecting the offer, including its acquisition of the Kerry Consumer Foods Meats and Meals business, positive performance of Pilgrim’s Pride business in the fourth quarter of 2021, various efficiency initiatives and other factors.

“Since communicating its revised offer of $28.50 on November 15, 2021, JBS made no further proposals to the Special Committee, and did not engage in any negotiations with the Special Committee,” according to the Pilgrim’s Pride SEC filing. “The Special Committee is aware of no material facts relating to the performance of PPC that are inconsistent with the findings of its diligence review, and the Special Committee has not been advised by JBS of any reasons for the withdrawal of its proposal relating to PPC’s performance or its prospects.”

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