Pilgrim's Pride completes tender offer
Pilgrim's Pride expects to complete the acquisition of
rival poultry producer Gold Kist in the New Year, after 88.9 percent of Gold
Kist shareholders tendered their stock prior to the tender offer closing on
offered $21 in cash for each share after its initial offer of $20 was
The 88.9 percent of shares tendered equates to a total of 45,343,812 shares
of Gold Kist
common stock. All shares
validly tendered and not properly withdrawn prior to the expiration of the offer
have been accepted for payment by Pilgrim's Pride.
"The completion of this tender offer is a significant milestone for
Pilgrim's Pride," said O B Goolsby Jr, Pilgrim's Pride president and chief
executive officer. "We look forward to beginning 2007 as a much stronger
company, with industry-leading market share, a broad and growing customer base
and a balanced portfolio of fresh chicken and value-added products. We are now
ready to begin realizing the compelling strategic value and benefits we
envisioned from this acquisition and look forward to setting a new standard in
the chicken industry."
Pilgrim's Pride has commenced the subsequent offering period for all
remaining shares that have not yet been tendered. The new offer period will
expire at 5 pm, New York City Time, on Friday 5 January 2007, unless
As previously announced, Pilgrim's Pride and Gold Kist entered into a
definitive merger agreement on 3 December 2006, under which Pilgrim's Pride
agreed to acquire all of the outstanding shares of Gold Kist common stock for
$21.00 per share in cash.
The transaction was unanimously approved by the boards of directors of both
Pilgrim's Pride and Gold Kist and has a total equity value of approximately $1.1
billion, plus the assumption or refinancing of approximately $144 million of
Gold Kist's debt. Following the merger, Gold Kist will be a wholly owned
subsidiary of Pilgrim's Pride.
Pilgrim's Pride said the deal would make it the largest chicken producer in
the United States and Puerto Rico and the second-largest producer and seller of
chicken in Mexico. Tyson
, which also has large beef and pork operations, has $26 billion in
annual revenue, compared to $7.4 billion for Pilgrim's Pride and Gold Kist.
In trading Thursday on the New York Stock Exchange, shares of Pilgrim's
Pride rose 29 cents to close at $29.54. Gold Kist shares were unchanged at
$20.99 on the Nasdaq Stock Market.
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