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Gold Kist Inc. has agreed to be acquired by Pilgrim's Pride Corp. in a $1.1 billion deal that will create the world's largest poultry company.
Under the agreement announced early Dec. 4, Pittsburg, Texas-based Pilgrim's Pride will acquire all of Atlanta-based Gold Kist's common stock for $21 a share in cash and will assume $144 million of Gold Kist debt. The transaction has the unanimous approval of the boards of directors of both companies.
Pilgrim's Pride had earlier launched a $1 billion hostile takeover bid for Gold Kist after the two companies failed to agree on a deal. Gold Kist rejected the offer and said it would take measures to enhance its performance.
In November, Gold Kist reported a net loss of $17.7 million on $2.1 billion in sales in fiscal 2006, compared with net income of $112.2 million on $2.3 billion in sales in fiscal 2005. The company attributed the loss to a decline in broiler prices and decreased sales.