Pilgrim’s to pay $350 million for GNP organic poultry business
Pilgrim’s Pride, a major competitor to Tyson Foods of Springdale, will acquire GNP Co., an organic poultry operation in Minnesota, for $350 million. The all-cash deal is expected to close in the first quarter of 2017, pending regulatory approval.
Pilgrim’s Pride CEO Bill Lovett said GNP’s Just Bare line of natural and organic poultry products will complement Pilgrim’s portfolio and help expand operations into new markets in the Upper Midwest.
In addition, GNP Co.’s operational competencies and use of innovative technologies, including gas stunning, aeroscalding and automated deboning, will enable Pilgrim’s to significantly increase the rate of adopting new technologies in existing facilities, enhancing the company’s production efficiencies and operational excellence, the company said in a news release.
Pilgrim’s expects to achieve approximately $20 million in annualized synergies, primarily from the optimization of production and distribution, and cost savings in purchasing, production and logistics. The company also anticipates capturing an estimated present value of approximately $28 million in tax savings.
GNP has production facilities in Cold Spring and Luverne, Minn., and Arcadia, Wis., approximately 400 family farm partners and more than 1,700 employees. GNP Company’s products are distributed in nearly all 50 states under the Just Bare and Gold’n Plump brand names.