MEXICO/BRAZIL - Brazilian meat processor JBS together with its US poultry processing operation Pilgrim’s Pride has acquired the poultry processing operations of Tyson in Mexico and Brazil.
The operation in Mexico will be acquired by Pilgrim’s Pride, while operating in Brazil will be acquired by JBS Foods, a wholly owned subsidiary of JBS SA.
The total price to be paid is $575.0 million, of which $400.0 million correspond to the operation in Mexico, and the amount of $ 175.0 million is the value of operations in Brazil.
Both deals will be paid in cash and are subject to the approvals of the relevant regulatory authorities.
The Mexican operation, Tyson de Mexico, is vertically integrated and has been established for more than 20 years in Gomez Palacio, North of Mexico.
Tyson de Mexico has three processing units and employs more than 5,400 people in the processing units, office and seven distribution centres.
Pilgrim's Pride anticipates that the deal will generate incremental annual revenues of approximately $ 650 million.
The acquisition in Brazil involves three fully integrated processing units, two in Santa Catarina and one in Paraná.
Tyson Brazil, founded in 2008, employs 5,000 people. JBS expects the operation to generate annual revenues of about $ 350.0 million in Brazil for JBS Foods.
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