Pilgrim’s Pride agrees to acquire GNP Company

US-based chicken processing firm Pilgrim's Pride has agreed to acquire chicken product supplier GNP Company for $350m.

The acquisition has received a complete support from Pilgrim's Board of Directors, as well as the support of JBS, the majority owner of Pilgrim's.

The proposed transaction would close during the first quarter of next year, subject to regulatory review, approval and customary closing conditions.

Pilgrim's chief executive officer Bill Lovette said: "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."

The acquisition will help Pilgrim to take advantage of GNP’s operational competencies and innovative technologies such as gas stunning, aeroscalding and automated deboning, as well as enhance its production efficiencies and operational excellence.

Lovette added: "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.

"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."

The acquisition would bolster Pilgrim's existing business in geography and differentiated branded products.