3 Things to Consider When Buying Pilgrim’s Pride

Pilgrim’s Pride CEO Fabio Sandri said the company wants to grow and acquisitions could be part of that plan.

However, he added that the company wants to ensure that the acquired company or facility will fit into its current operations.

“We will always be a cautious acquirer,” Sandri said during a quarterly earnings conference call Aug. 1. “We have proven in the past that we can create value in acquisitions, and there have been many opportunities.”

According to Sandri, Pilgrim’s Pride is considering “three main elements” when planning the acquisition.

1. Chicken

While Pilgrim’s Pride has a pork business in Europe, he added that chicken is a protein where the company has proven it can succeed and create value for shareholders.

2. Prepared food

Sandri said a key way to differentiate her offering at Pilgrim’s Pride is by offering branded prepared meals.

“We want to grow this business,” he said.

While Pilgrim’s has expanded its prepared meals offerings largely through organic growth, “we’re always looking for opportunities in the U.S. or abroad to expand our prepared meals portfolio,” Sandri said.

3. New geographies

Sandri said another criterion for a potential acquisition is “a different location for the chicken category.”

He did not specify whether he was referring to regions of the United States where Pilgrim’s operates or new countries.

In the past, US-based Pilgrim’s Pride has expanded into new markets after acquiring the Mexican operation of Tyson Foods in 2015 and purchasing Northern Irish company Moy Park in 2017.

Pilgrim’s Pride Corp. is based in Greeley, Colorado. The company produced 161.7 million pounds of ready-to-cook chicken per week in 2023, according to the WATTPoultry Top Poultry Companies Database.