Pilgrim's Pride Corp (PPC)

[mu12450]

JBS sets date for acquisition of Pilgrim's Pride



(12/15/2009)
Rod Smith

JBS S.A. announced this week that a special stockholder meeting will be conducted Dec. 29 at which stockholders will be asked to approve the company's acquisition of Pilgrim's Pride Corp. and issuance of $2 billion in bonds to help finance that acquisition.

JBS said stockholders will also be asked to approve the merger of the company with Bertin S.A. in which Bertin and JBS shares will be pooled into a new holding organization in which JBS will have majority ownership.

The meeting will be held at JBS headquarters in Sao Paulo, Brazil.

The company also announced today it has reached an agreement with Vion Food Group in Australia for Swift Australia to acquire Vion's Tatiara Meat Co., which would make Swift Australia the largest lamb processor in Australia, with a capacity to handle 24,500 head per day.

Tatiara, headquartered in Bordertown, South Australia, markets lamb to high-end markets in Australia, Europe and North America and has annual revenues of $200 million (Australian, $183 million, U.S.)

JBS said it offered $30 million (Australian, $27.5 million, U.S.) for the company.

The acquisition is subject to customary closing conditions and Australian regulatory review.