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Pilgrim's Pride Completes Acquisition of ConAgra's Chicken Division And
Announces Addition of Blake Lovette to Board
Stock Reclassification of Nation's Second-Largest Chicken Producer Is Effective;
New Common Stock Now Trading on NYSE Under Ticker Symbol 'PPC'
PITTSBURG, Texas, Nov. 24 /PRNewswire-FirstCall/ -- Pilgrim's Pride Corporation
, the second-largest poultry producer in the United States, today announced that
it has completed its acquisition of ConAgra Foods, Inc.'s (NYSE: CAG; "ConAgra")
chicken division.
(LOGO: http://www.newscom.com/cgi-bin/prnh/20030417/PILLOGO)
As previously announced, the purchase price is based on the adjusted net book
value of the ConAgra chicken division on the closing date, which is estimated at
approximately $546.8 million. The purchase price consisted of approximately
25.4 million shares of common stock and approximately $300.8 million in cash,
subject to adjustment to the extent the actual adjusted net book value as of the
closing date differs from the estimated amount.
As a result of this combination, Pilgrim's Pride is now the nation's
second-largest chicken company with pro forma annual net sales of approximately
$5 billion. The completed acquisition adds several well-known brands to the
company's portfolio, including Pierce(R), Country Pride(R), Easy-Entree(R) and
To-Ricos(R), and will significantly expand Pilgrim's Pride's already sizeable
prepared foods chicken division, which prior to the acquisition had annual net
sales of approximately $921 million and which has grown at an average annual
compound growth rate in excess of 13 percent over the last five years.
Additionally, Pilgrim's Pride is now a preferred supplier of chicken products to
ConAgra, making ConAgra one of Pilgrim's Pride's largest customers.
Pilgrim's Pride also announced that Blake Lovette has joined its Board of
Directors. Mr. Lovette served as president of ConAgra Poultry Company until
June 2002 and prior to such time served in a number of positions in the poultry
industry, including as president and chief operating officer of Valmac
Industries and president and chief operating officer of poultry operations of
Holly Farms Corporation.
O.B. Goolsby, president and chief operating officer of Pilgrim's Pride, said,
"This acquisition represents a major step forward in our strategy to continue
adding value to all of our products and services. The addition of ConAgra's
specialty prepared chicken products, well-established distributor relationships,
strong consumer brands and Southeastern processing facilities will enable us to
provide customers at every point on the distribution chain with the broadest
range of quality value-added products and services available in the market
today."
"Going forward, we are confident that our higher-margin product mix and expanded
geographical reach will better position us to capitalize on the growing demand
for prepared and fresh case-ready chicken both in the U.S. and abroad. Our
increased size and scale will also give us the ability to compete more
effectively in a consolidating marketplace and further enhance the technological
leadership and cost-efficiency for which we are known. Our transition team has
been working hard to ensure the smooth and successful integration of ConAgra's
employees, facilities, customers and suppliers, and we are excited to begin
delivering the many important strategic benefits this transaction will create
for all of our constituencies. I am also excited about the addition of Mr.
Lovette to our Board. His extensive experience in the poultry industry will be
a tremendous asset to the integration and our business overall." Mr. Goolsby
concluded.
Pilgrim's Pride also announced that the reclassification of the company's Class
A and Class B common stock into a single class of common stock became effective
at the close of trading on Friday, November 21, 2003. The company's new common
stock is now trading on the New York Stock Exchange under the ticker symbol
"PPC." Certificates representing all outstanding shares of Class A and Class B
common stock automatically represent an equal number of shares of the single
class of new common stock, making it unnecessary to exchange existing
certificates for new certificates.
About Pilgrim's Pride
Pilgrim's Pride Corporation is the second-largest poultry producer in the United
States -- the second-largest in chicken and fifth-largest in turkey--, the
largest chicken company in Puerto Rico and the second largest chicken company in
Mexico. Pilgrim's Pride employs more than 40,000 persons and has major
operations in Texas, Alabama, Arkansas, Georgia, Kentucky, Louisiana, North
Carolina, Pennsylvania, Tennessee, Virginia, West Virginia, Mexico and Puerto
Rico, with other facilities in Arizona, California, Iowa, Mississippi, Utah and
Wisconsin.
Pilgrim's Pride products are sold to foodservice, retail and frozen entree
customers. The Company's primary distribution is through retailers, foodservice
distributors and restaurants throughout the United States and Puerto Rico and in
the Northern and Central regions of Mexico. For more information, please visit
http://www.pilgrimspride.com/ .
Forward-Looking Statements
Statements contained in this press release that state the intentions, hopes,
beliefs, anticipations, expectations or predictions of the future of Pilgrim's
Pride Corporation and its management are forward-looking statements. It is
important to note that the actual results could differ materially from those
projected in such forward-looking statements. For example, factors that could
cause actual results to differ materially from those projected in such
forward-looking statements include: matters affecting the poultry industry
generally, including fluctuations in the commodity prices of feed ingredients,
chicken and turkey; disease outbreaks affecting the production performance
and/or marketability of the Company's poultry products; contamination of our
products, which has recently and can in the future lead to product liability
claims and product recalls; exposure to risks related to product liability,
product recalls, property damage and injuries to persons, for which insurance
coverage is expensive, limited and potentially inadequate; management of our
cash resources, particularly in light of our substantial leverage; restrictions
imposed by, and as a result of, our substantial leverage; currency exchange rate
fluctuations, trade barriers, exchange controls, expropriation and other risks
associated with foreign operations; changes in laws or regulations affecting our
operations, as well as competitive factors and pricing pressures; inability to
effectively integrate ConAgra's chicken business or realize the associated cost
savings and operating synergies currently anticipated; and the impact of
uncertainties of litigation as well as other risks described under "Risk
Factors" in our Annual Report on Form 10- K and subsequent filings with the
Securities and Exchange Commission.
Contact:
Richard A. Cogdill
Chief Financial Officer
540/896-0406
Media:
Eden Abrahams / Jennifer Felber
Joele Frank, Wilkinson Brimmer Katcher
(212) 355-4449
http://www.newscom.com/cgi-bin/prnh/20030417/PILLOGO
DATASOURCE: Pilgrim's Pride Corporation
CONTACT: Richard A. Cogdill, Chief Financial Officer of Pilgrim's Pride,
+1-540-896-0406; or Media, Eden Abrahams, or Jennifer Felber, both of Joele
Frank, Wilkinson Brimmer Katcher, +1-212-355-4449, for Pilgrim's Pride
Web site: http://www.pilgrimspride.com/