ID NEWS: Pilgrim's Pride to acquire ConAgra value-added chicken lines

Pilgrim's Pride Corp., Pittsburg, has announced a definitive agreement to acquire the chicken division of ConAgra Foods, Inc., Omaha, NB. The deal will make Pilgrim's Pride the second largest U.S. chicken producer, at $5 billion in annual sales.

The $590 million deal will include Pierce, Country Pride, Easy-Entree and To-Ricos brands. These brand additions will significantly expand Pilgrim's Pride prepared foods chicken division, which currently generates $890 million in sales. In addition, Pilgrim's Pride will become a preferred supplier of chicken products to ConAgra.

"The addition of ConAgra's specialty prepared chicken products, well established distributor relationships, strong consumer brands and southeastern processing facilities will enable us to provide customers at every point on the distribution chain with the broadest range of quality value-added products and services available in the market today," comments O.B. Goolsby, president and coo of Pilgrim's Pride.

ConAgra chicken business poses little overlap with that of Pilgrim's Pride in market focus, distributor relationships and geographic relationships, according to Pilgrim's Pride. Among benefits cited will be improved distribution capabilities, through ConAgra's "established relationships with broadline national distributors, combined with Pilgrim's Pride's direct distribution channels for retail, restaurant and foodservice customers throughout the U.S."

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