JBS N.V. has submitted a non-binding proposal to acquire the remaining 18% stake in Pilgrim's Pride Corporation that it does not already own, valuing the transaction at approximately $2.7 billion based on current share prices.
The offer proposes an exchange ratio of 2.086 JBS Class A common shares for each Pilgrim's Pride share, reflecting JBS shares at $13.66 and Pilgrim's Pride at $28.49 as of the latest closing prices. JBS currently holds about 82% of Pilgrim's Pride's common stock.
A special committee of independent directors at Pilgrim's Pride is expected to be appointed to evaluate the proposal, with advice from separate legal and financial advisors. Approval would require a majority vote from Pilgrim's Pride shareholders excluding JBS, which would not need to vote on the deal. If completed, Pilgrim's Pride shares would be delisted from Nasdaq and deregistered.
JBS Chairman Jeremiah O'Callaghan highlighted the long-standing partnership between the two companies, noting Pilgrim's Pride's expansion, strengthened global presence, and revenue growth over 16 years. The company stated the transaction would allow Pilgrim's Pride shareholders to retain exposure to the business within a larger platform, reduce standalone public company costs, and provide access to JBS's broader market capitalization and investor base.
JBS has engaged Citi as its financial advisor and White & Case LLP as legal counsel for the proposal. No definitive agreement has been reached, and terms remain subject to further negotiation and approvals.
