Meat+Poultry - October 2017 - 10

BUSINESS NOTES

POST HOLDINGS TO BUY
BOB EVANS FARMS

10

MEAT+ POULTRY | 10.17 | www.meatpoultry.com

PILGRIM'S ACQUIRES NORTHERN
IRELAND'S MOY PARK
Pilgrim's Pride Corp., Greeley,
Colorado, has acquired Moy Park, a
poultry processor and prepared foods
manufacturer based in Northern
Ireland, from São Paulo, Brazil-based
JBS SA for approximately $1.3 billion.

"The acquisition
gives us access to the
attractive UK and
European markets,
which advances our
strategy of diversifying
our portfolio to be more
global while reducing
volatility across our
businesses."
- BILL LOVETTE

"We are pleased to announce the
acquisition of Moy Park, which will
position Pilgrim's to become a global
player, with an improved and more
stable margin profile on the chicken
business and an expanded portfolio
of prepared foods," said Bill Lovette,
CEO of Pilgrim's Pride. "Following our
successful acquisitions of GNP and the
assets in Mexico, Moy Park represents
a logical next step in the evolution of
our geographical and brands footprint.
"The acquisition gives us access
to the attractive UK and European
markets, which advances our strategy
of diversifying our portfolio to be more
global while reducing volatility across
our businesses. We will have new
business opportunities through the

addition of Moy Park's fully integrated
poultry production platform and its
strong presence in prepared foods."
The acquisition has been
unanimously approved by a special
committee of Pilgrim's Pride's board
of directors. JBS SA is one of Pilgrim's
largest shareholders and the company
said the special committee consists
of independent equity directors
unaffiliated with JBS.
Moy Park has seven processing
plants, four focused on the primary
processing of poultry and three
value-added plants that manufacture
cooked, marinated and sliced products.
The company markets two consumer
brands under the Moy Park Chicken
and O'Kane names.
Moy Park headquarters will remain
in Craigavon, Northern Ireland, and
its current management team will
continue to run the company, according
to Pilgrim's Pride.

SMITHFIELD SHIFTS
RACING SPONSORSHIP
After being aligned with the Pettys
and driver Aric Almirola since 2012,
Smithfield Foods Inc. has announced
it will leave Richard Petty Motorsports
(RPM) and join Stewart-Haas Racing
(SHR) as a primary sponsor at the
beginning of 2018. The new driver of
the SHR Monster Energy Cup car will
be named later.
"Leaving RPM and joining SHR
was a difficult decision, but one we
believe will deepen our connection
to NASCAR. We have enjoyed our
relationship with Richard Petty over
the past five years, but are excited to
join SHR and explore new ways to
leverage our NASCAR sponsorship,"
said Kenneth Sullivan, president and

Dana Gardner / Shutterstock.com

Post Holdings Inc. said it will acquire
Bob Evans Farms Inc. for $77 per
share in a transaction valued at
approximately $1.5 billion. The
combination is expected to expand
Post's presence in higher-growth
packaged foods categories.
Based in New Albany, Ohio, Bob
Evans is a producer and distributor
of refrigerated potato, pasta and
vegetable side dishes, pork sausage,
and refrigerated and frozen products
under the Bob Evans, Owens, Country
Creek and Pineland Farms brands. The
company also has a growing foodservice
business that represents approximately
35 percent of volume. Earlier this year,
Bob Evans Farms sold its restaurant
business to Golden Gate Capital
following mounting investor pressure.
The addition of Bob Evans
is expected to strengthen Post's
footprint in foodservice and is highly
complementary to its portfolio of
ready-to-eat cereal brands, active
nutrition brands and value-add egg,
potato and cheese brands.
"Combining with Bob Evans
expands our portfolio of top brands
and gives Post a leading position in
the perimeter of the store. We look
forward to welcoming the talented
Bob Evans team to Post and working
to create a successful future together,"
said Rob Vitale, president and CEO of
Post Holdings.
The transaction was approved
by the boards of directors of both
companies and is expected to be
completed early next year. Upon closing
of the deal, Post plans to combine
its existing Michael Foods Group
refrigerated egg, potato and cheese
business with Bob Evans to establish a
refrigerated retail business within the
company under the leadership of Mike
Townsley, Bob Evans' current president
and CEO. Jim Dwyer who will remain in
his current role as president and CEO of
the Michael Foods Group, managing the
commercial foodservice egg, potato and

pasta businesses, which will include the
Bob Evans foodservice business.
The purchase price represents a
15 percent premium on the 30-day
volume weighted average of Bob Evans
shares. Post management expects the
acquisition to be immediately accretive
to Post's top-line growth.
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Meat+Poultry - October 2017

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