Pilgrim’s Pride Buys Meats and Meals Business of Kerry Consumer Foods
Pilgrim’s Pride Corporation (PPC), one of the foremost names globally in the frozen food products segment, has acquired the Meats and Meals business of Kerry Consumer Foods in the United Kingdom and Ireland. Pilgrim’s Pride will pay £680 million ($952 million) to snap up the business. The deal is likely to close in the fourth quarter of 2021, subject to certain approvals.
The Meats and Meals business of Kerry Consumer Foods has a significant presence in the United Kingdom and Ireland. While Kerry Meats is a prominent manufacturer of private label meats, meat snacks, and food-to-go products, Kerry Meals specializes in ethnic chilled and frozen ready meals.
Fabio Sandri, CEO of Pilgrim’s Pride, said, “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. 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.” (See Pilgrim’s Pride stock analysis on TipRanks)
Barclays analyst Duffy Fischer recently reiterated a Buy rating on the stock and raised the price target to $28 from $25 (31% upside potential).
The stock has a Moderate Buy consensus rating based on 2 Buys and 1 Hold, with an average analyst price target of $28. Shares have gained 18% over the past year.
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