Pilgrim’s Pride Corporation announced that it has executed an acquisition agreement to acquire the Meats and Meals business of Kerry Consumer Foods in the United Kingdom and Ireland. The acquisition, which was unanimously approved by Pilgrim’s Board of Directors, values the acquired businesses at a GBP680m enterprise value. According to a press release, the purchase amount represents an 8.5x multiple on implied expected standalone EBITDA for 2021.
“We are pleased to have the opportunity to position Pilgrim’s as a leading prepared foods and branded products player through the acquisition of Kerry Consumer Foods’ Meats and Meals business,” Fabio Sandri, Pilgrim’s Chief Executive Officer said. “The transaction enhances our value-added portfolio by adding market-leading brands such as Denny, Richmond, and Fridge Raiders, which we expect to deliver a higher and more stable margin profile. We look forward to welcoming Kerry Consumer Foods’ Meats and Meals business’ talented management team and other team members, led by Nick Robinson, to the Pilgrim’s family, and we look forward to working together to drive growth and deliver value for all of our stakeholders.”
Kerry Meals is a leading ethnic chilled and frozen ready meals business in the United Kingdom, while Kerry Meats is a manufacturer of branded and private label meats, meat snacks, and food-to-go products in the United Kingdom and Ireland. The combined businesses produced over GBP725m in annual sales during the year ended December 31, 2020, and have more than 4,500 team members. The Kerry team also has a proven track record of innovation with the successful launch of its branded meat-free products.