Deals
JBS Sells U.K. Food Unit to Its Pilgrim's Pride Subsidiary
- The $1.04 billion deal is latest move by JBS to offload assets
- Transaction comes as ex-JBS chairman is arrested in Brazil
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JBS SA, the embattled Brazilian meat company whose former chairman was arrested over the weekend, agreed to sell U.K. poultry producer Moy Park to another subsidiary for about 790 million pounds ($1.04 billion).
The deal will achieve about $50 million in annual cost savings over the next two years, according to a statement Monday from the acquirer, Pilgrim’s Pride Corp. The second-largest U.S. chicken producer will finance the takeover using cash on hand, existing credit facilities and a seller financing note issued to JBS, which Pilgrim’s said it intends to replace with permanent financing.