is expanding its reach — along with its organic and antibiotic-free chicken production capabilities — with the acquisition of a Minnesota chicken company.
The second-largest poultry processor in the U.S. announced Tuesday that it had reached an agreement to acquire in an all-cash $350 million deal. The transaction is expected to close in the first quarter of 2017.
“The Pilgrim’s team is excited to combine the collective strengths of Pilgrim’s Pride and GNP Company,” Pilgrim’s CEO Bill Lovette said in a statement. “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.”
GNP, which is based in St. Cloud, Minn., has production facilities in Cold Spring and Luverne, Minn., and Arcadia, Wisc., and about 400 family farm partners. It owns and operates the Gold’n Plump and antibiotic-free Just Bare brands.
Last year, Pilgrim’s Pride committed . GNP in 2015 unveiled similar plans to within the same time frame.
Pilgrim’s said the GNP acquisition will also help “significantly increase the rate of adoption of new technologies in existing facilities,” crediting the Minnesota company for its use of innovative technologies including “gas stunning, aeroscalding and automated deboning.”
“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,” Lovette said. “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.”
Part of Brazilian meatpacking giant JBS S.A.’s empire, Pilgrim’s Pride has been eager to grow through acquisition in recent years. After an unsuccessful bid to buy Hillshire Brands, the Greeley-based company .
