Pilgrim’s Pride Acquires GNP Co for $350m
30 Nov 2016 --- Pilgrim’s Pride has acquired US rival chicken producer GNP Co for $350m, saying that it was attracted by GNP’s technologies such as automated deboning and gas stunning. By acquiring the GNP business, Pilgrim’s Pride, which is majority owned by Brazil’s JBS, is expanding its presence into new markets, as well as bolstering its status as an organic and natural processor of chickens.
GNP processes the Gold’n Plump and Just Bare chicken products. It has processing facilities in Minnesota and Wisconsin and distributes in nearly all US states.
It has around 400 farmer partners and more than 1,700 employees.
"The Pilgrim's team is excited to combine the collective strengths of Pilgrim's Pride and GNP Company," said Bill Lovette, Pilgrim's CEO.
"GNP Company boasts outstanding state-of-the-art assets in geographic areas where Pilgrim's is not currently present, providing Pilgrim's the opportunity to expand our production and customer bases, while maintaining our high standards for quality service and great-tasting products."
"Today's announcement is a clear demonstration of Pilgrim's commitment to our growth strategy of disciplined acquisitions that enhance both our portfolio of value-added products and our ability to provide key customers with the high quality products demanded by consumers," Lovette added.
"We look forward to welcoming GNP Company's team members and family farmer partners to the Pilgrim's team as we continue to position Pilgrim's as the preferred choice of consumers and retail and foodservice partners across the country."
Pilgrim’s Pride said a key factor behind the acquisition was getting its hands on GNP’s technologies. It said that by using gas stunning, aeroscalding and automated deboning, it can help its existing facilities become more efficient.
It added that by adding GNP’s organic and natural product lines it will ensure Pilgrim’s Pride is well positioned in these areas in the future.
Earlier this year, GNP said it was lowering antibiotics use and making its barns less crowded, responding to consumer concerns about the welfare of chickens and the provenance of the food they eat.
GNP said that it aims, within the next four year that for all of its Gold’n Plump’s chicken sold in groceries will carry the “No Antibiotics-Ever” label and the American Humane Certified farm program seal.
Processing over 140m pounds of chicken a week, Pilgrim’s Pride is the second biggest chicken producer in the US, behind Tyson Foods.
Brazilian beef giant JBS took a majority stake in Pilgrim’s Pride in 2009, pulling the company out of bankruptcy and creating a rival to Tyson Foods.
