Pilgrim's Pride gets 89% of shares in Gold Kist

0 Comments | Deseret News (Salt Lake City), Dec 29, 2006

PITTSBURG, Texas (AP) -- Poultry producer Pilgrim's Pride Corp. said Thursday that it received 88.9 percent of shares in Gold Kist Inc. with its $1.1 billion tender offer and expects to complete the acquisition of its rival in early January.

Pilgrim's Pride, the nation's No. 2 poultry producer, offered $21 cash per share to Gold Kist stockholders.

Pilgrim's Pride said the deal would make it the nation's largest chicken producer by pounds, with nearly 25 percent of the market compared to 21.4 percent for Tyson Foods Inc., based on January 2006 sales.

However Tyson, which also has large beef and pork operations, has $26 billion in annual revenue, dwarfing the $7.4 billion by Pilgrim's Pride and Gold Kist.

The initial offer and withdrawal-rights period ended Wednesday. About 45.3 million shares of Atlanta-based Gold Kist stock, the third-largest U.S. chicken producer, were tendered, according to Pilgrim's Pride.

Pittsburg-based Pilgrim's Pride launched an offer for all remaining shares, which expires Jan. 5.

O.B. Goolsby Jr., the president and chief executive of Pilgrim's Pride, said the combined company would have a broad and growing customer base and a balanced portfolio of fresh chicken and prepared products.