Pilgrim’s Pride Corporation has executed an acquisition agreement to acquire the meats and meals business of Kerry Consumer Foods in the United Kingdom and Ireland. Following the acquisition, Greeley, Colorado, USA-headquartered Pilgrim’s will have a significant value-added protein and integrated prepared foods business in those markets, anchored by a portfolio of strong brands.
The deal, which was unanimously approved by Pilgrim’s board of directors, values the acquired businesses at a £680 million (or approximately $952 million based on a 1.40 USD/GBP exchange rate as of June 16, 2021) enterprise value. The purchase amount represents an 8.5x multiple on implied expected standalone EBITDA for 2021.
“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.”
“We look forward to welcoming Kerry Consumer Foods’ meats and meals business’ talented management team and other team members, led by Nick Robinson, to the Pilgrim’s family, and we look forward to working together to drive growth and deliver value for all of our stakeholders,” Sandri continued.
“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 Kerry Consumer Foods CEO Officer Nick Robinson. “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.”
Kerry Meats is a manufacturer of private label and branded meats, meat snacks and food-to-go products in the United Kingdom and Ireland, as well as a leading ethnic frozen and chilled ready meals business in the United Kingdom. The combined businesses produced over £725 million in annual sales during the year ended December 31, 2020, and employs more than 4,500 people.
The acquisition is expected to be finalized in the fourth quarter of 2021 and is subject to routine closing purchase price adjustments (including working capital and net debt adjustments), customary closing conditions and regulatory approvals.
