JBS Again Grows Stake in Pilgrim’s Pride

Brazil’s JBS has spent $107.2m to buy an additional 18.9m shares in US chicken producer Pilgrim’s Pride (PPC). The purchase, which represents an offer of $5.69 per share, increases the meatpacker’s stake in the company to 75.3% from 68%, the company says. JBS’ purchase comes just days after announcing that it raised its stake to 68% from 67.2% during a recent PPC capital increase. The Brazilian company purchased practically all the remaining shares owned by company founder Lonnie “Bo” Pilgrim. A spokesman for JBS said the company sees the potential for further efficiencies at PPC in the process of transforming it from a chicken producer to a more global food producer. The spokesman dismissed talk that the price offered was a discount to the market price and would only say that the transaction was a privately negotiated block trade deal. Shares of Pilgrim’s Pride on Wednesday closed at $7.41, up 2.77% from the previous day’s close. PPC officials could not be reached for additional comment. PPC registered overall sales of $8bn in 2011 and has seen an average normalized Ebitda margin that ranged between 6% to 8% over the past 5 years.