Pilgrim's finalizes acquisition of GNP Co. from The Maschhoffs
Jan. 9, 2017
by MEAT+POULTRY Staff
The purchase cost Pilgrim's $350 million.
GREELEY, Colo. – Pilgrim’s Pride Corp., a business unit of São Paulo, Brazil-based JBS SA, completed its acquisition of GNP Co., St. Cloud, Minnesota, from its parent company, The Maschhoffs LLC, on Jan. 6. The all-cash, $350 million transaction was announced Nov. 29, 2016.
At the time of the acquisition announcement, Bill Lovette, Pilgrim’s CEO said, “GNP Co. 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 was acquired by The Maschhoffs, a family owned, pork production company based in Carlyle, Illinois, in 2013. Josh Flint, PR and communications manager with The Maschhoffs, previously told MEAT+POULTRY, the acquisition demonstrates his company’s continued focus on the hog production industry.
“This represents the Maschhoff family’s commitment to the hog business,” he said, “while setting GNP up for long-term success as one of the world’s premier chicken-producing companies.”
According to a previous statement, Pilgrim’s expects to realize $20 million in annual operating synergies in production and distribution and it plans on capturing an estimated present value of approximately $28 million in tax savings and a post synergies EBITDA multiple of 3.9.