JBS: Company Sells Moy Park To Pilgrim's Pride For 790 Million Pounds
Brazilian meat packer JBS reached an agreement to sell its stake in Moy Park to Pilgrim's Pride Corporation for about 790 million pounds. Moy Park was valued at 1 billion pounds (US$ 1.3 billion).
The transaction was unanimously approved by a special committee of Pilgrim's board of directors and JBS board. According to the Brazilian company, the proceeds from the operation will be used to amortize short-term debt in Brazil, improving its debt profile and liquidity.
JBS, which is Pilgrim's largest shareholder, said the divestment would allow it to maintain sound financial performance with diversified assets in line with its intent to open the capital of one of its subsidiaries in the United States.
The Brazilian company further stated that the transaction would create a more efficient corporate structure and that "Pilgrim's leadership is poised to extract even more value from Moy Park, given its successful track record of integrating Tyson de Mexico and GNP assets, as well as the strong performance of their existing assets. "
Since J&F (JBS parent company) executives have concluded a plea-bargain deal with Brazilian authorities, revealing involvement in many corruption cases, the company has been seeking to wipe out operations and sell assets such as JBS units in Mercosur, Alpargatas, and Eldorado. However, the plea-bargain deal can be reviewed by the Brazilian Justice after the disclosure of new recordings suggesting information omission by the company's executives.