Home PPC Pilgrim's Satisfaction (PPC) acquires Kerry's Meats and Meals Enterprise

Pilgrim’s Satisfaction (PPC) acquires Kerry’s Meats and Meals Enterprise

Pilgrim’s Pride Corporation PPC wants to expand its brand portfolio through strategic buyouts. As a most recent development, the company agreed to purchase Kerry Consumer Foods’ Meats and Meals business in the UK and Ireland. This acquisition will help Pilgrim’s Pride consolidate its position in a major protein and integrated ready meal business thanks to renowned brands such as Denny, Richmond and Fridge Raiders.

The final transaction, which is expected to close in the fourth quarter of 2021, has an enterprise value of £ 680 million (or nearly $ 952 million at an exchange rate of $ 1.40 to £ 1.40 as of June 16, 2021). Therefore, this amount is an 8.5 times multiple of the expected independent EBITDA for the year. This acquisition is subject to the routine closing price as well as customary conditions and regulatory approvals.

Kerry Meats is a leading manufacturer of branded and private label meat, meat snacks and food-to-go products in the UK and Ireland, while Kerry Meals is a chilled and frozen convenience food business in the UK. The two companies combined had annual sales of over £ 725 million for the fiscal year ended December 31, 2020 and showcased more than 4,500 team members. The Kerry business also has a successful history of innovation, including the introduction of its branded meat-free products.

Hence, the above transaction is likely to enhance the buyer’s portfolio diversity and position itself as a major convenience and branded food company. The addition of the Kerry business will help Pilgrim’s Pride develop innovative products with combined expertise and meet growth targets. We note that Pilgrim’s Pride has a dominant position in the global protein market and that the latest agreement is expected to further strengthen the finished and branded products segment.

Meanwhile, Pilgrim’s Pride is benefiting from its product portfolio strategy, operational efforts and key customer strategy that helped mitigate the effects of difficult market conditions during the pandemic. The company’s customer-centric approach has led it to develop unique offerings that give it a competitive edge. In fact, focusing on key customers is a way of refining the portfolio to drive growth. Additionally, the company’s dedicated efforts, including zero-base budgeting, are designed to create synergies. In addition, Pilgrim’s Pride benefits from its robust online sales.

Buoyed by such efforts, shares of currently No. 3 (Hold) company von Zacks are up 20.3% over the past six months, compared to the 9.2% rally in the industry.

The story goes on

Looking for Food Stocks? Check this out

Darling ingredients DAR, which currently flaunts a # 1 Zacks rank (Strong Buy), has a earnings surprise averaging 29.8% over the past four quarters. You can see the full list of current Zacks # 1 Rank stocks here.

Medifast (WITH), currently with a Zacks rank of 1, has a surprising earnings surprise averaging 12.7% over the past four quarters.

Nomad food NOMD, ranked # 2 (Buy) in Zacks, has a surprising earnings surprise of 10.3% over the past four quarters.

Zacks names “Best Single Pick to Double”

From thousands of stocks, 5 Zacks experts have each selected their favorite, which will skyrocket + 100% or more in the coming months. Out of these 5, Research Director Sheraz Mian picks one that has the most explosive advantage of them all.

You know this company from its past glory days, but few would expect it to be facing a monster turnaround. Fresh from a successful repositioning and plenty of A-list celebs, it could do with other current Zacks’ stocks to double, like the Boston Beer Company, which shot 143.0% in just over 9 months, and Nvidia, which boomed +175.9% to compete or surpass% in a year.

Free: Check out our top stocks and 4 runners-up >>

Would you like the latest recommendations from Zacks Investment Research? Today you can download the 7 best stocks for the next 30 days. Click here to get this free report

Darling Ingredients Inc. (DAR): Free Stock Analysis Report

Pilgrims Pride Corporation (PPC): Free Stock Research Report

MEDIFAST INC (MED): Free Stock Analysis Report

Nomad Foods Limited (NOMD): Free Inventory Analysis Report

To read this article on Zacks.com, click here.

Zacks Investment Research

Latest articles

web optimization encourages oblique investments | Monetary tribune

With the flood of new investors on the stock market in a relatively short space of time, the regulator has stepped up its efforts...

6 causes Maxime Bernier needs you to vote for PPC

This article is part of a Narcity series that highlights the key points you need to know about where Canada's political party leaders stand...

PPC candidate apologizes for being requested to kill Trudeau – in some way

It could be the most insincere excuse in political history. Popular Party candidate and pot-backer Mark Emery was beaten up on Twitter Monday night after...

The state of search engine optimisation 2021 [New Search Engine Journal Research]

Do you love dates? Are you looking for help to successfully steer your SEO strategy and career in the right direction for 2022?Then...