Pilgrim's Pride: Acquisition creates US$ 12.4 billion company
American company Pilgrim's Pride, a subsidiary of JBS, will increase its net revenue to about US$ 12.4 billion per year with the acquisition of Hillshire Brands, the company says. This is 47% up on the 12 months ended in March this year.
The buyer says the new company will have earnings before interest, taxes, depreciation and amortization (EBITDA) of US$ 1.4 billion. The company's leverage, measured by the ratio between net debt and EBITDA, will be 4.2 times.
However, Pilgrim's Pride believes that the projections are 'conservative,' as it is optimistic about the business's ability to generate cash. The goal is to reduce its leverage to about 3.5x by the end of next year.