March 21, 2009

Pilgrim's Pride accepts US$80 million offer for Farmerville facility

Pilgrim's Pride Corporation announced that it has agreed to sell its chicken complex in Farmerville, Louisiana, to Foster Farms for US$80 million.

The transaction is subject to the parties entering into a purchase agreement, as well as the expiration or termination of the waiting period under the Hart-Scott Rodino Improvements Act and approval by the US Bankruptcy Court.

Pilgrim's Pride expects the transaction would be completed within 30 days from signing the purchase agreement.

The Farmerville operations include a processing facility, cook plant, hatchery, feed mill, protein conversion plant and any associated inventory.

Pilgrim's Pride Corporation employs approximately 47,000 people and operates chicken processing plants and prepared-foods facilities in 14 states, Puerto Rico and Mexico. The company's primary distribution is through retailers and foodservice distributors.