JBS Makes New Offer to Acquire Full Ownership of Pilgrim’s Pride

JBS has taken action for the second time to increase its control over U.S.-based poultry producer Pilgrim’s Pride to 100%. The company made a non-binding offer on August 18, 2026, to acquire all the shares of Pilgrim’s Pride that it does not already own.

According to JBS’s announcement, the company currently owns approximately 82% of Pilgrim’s Pride. The new offer proposes that each Pilgrim’s Pride share will be exchanged for 2,086 JBS Class A shares. Based on the closing prices on August 18, the offer corresponds to a value of $28.49 per Pilgrim’s Pride share. [JBS official statement]

The transaction is not yet finalized. For the offer to proceed, it requires the assessment of an independent special committee expected to be formed by the Pilgrim’s Pride board of directors and the approval of a majority of Pilgrim’s Pride shareholders who are not affiliated with JBS. [JBS official statement]

JBS’s 16-Year Journey with Pilgrim’s Pride

JBS’s relationship with Pilgrim’s Pride is not new. The Brazil-based food group acquired a majority stake in the company in 2009 following Pilgrim’s Pride’s bankruptcy protection process. Over the years, Pilgrim’s Pride has transformed into a broader poultry and prepared food operation covering not only the U.S. but also Mexico, the United Kingdom, and Europe.

JBS had previously sought to purchase the shares it did not own in 2021. The initial offer was made in cash at $26.50 per share, which was later raised to $28.50. The independent special committee of Pilgrim’s Pride concluded that this amount did not adequately value the shares of minority shareholders, and the transaction did not occur. [Pilgrim’s Pride special committee statement]

A significant difference in the 2026 offer is that the payment is planned to be made in JBS shares instead of cash. Thus, if the offer is accepted, the current minority shareholders of Pilgrim’s Pride will be able to participate as JBS shareholders in the group’s broader protein and prepared food portfolio.

Pilgrim’s Pride May Be Delisted

If the acquisition is completed, Pilgrim’s Pride’s shares traded on Nasdaq will be delisted, and the company’s securities registration will cease.

JBS argues that the full merger will simplify the corporate structure between the two companies, eliminate some costs arising from the status of being an independent publicly traded company, and allow for more flexible use of capital within the group. These are currently the company’s expectations regarding the transaction; the magnitude of any savings or operational impact has not been independently established. [JBS official statement]

Reuters also reports that the offer aims to secure JBS’s full control over Pilgrim’s Pride and that the process is contingent upon the approval of minority shareholders. [Reuters]

Why is Poultry Becoming More Critical for JBS?

The offer should not be seen merely as a share ownership arrangement. JBS has a broad global portfolio that includes beef, pork, poultry, prepared foods, and other protein categories. Pilgrim’s Pride is a significant part of the group’s poultry operation.

For food producers, the differences in costs and profitability among protein categories are making portfolio management increasingly important. Food Dive highlights that poultry operations have become one of the strengthening areas of profitability for large meat producers in the current environment, while high beef costs are putting pressure on the industry. [Food Dive]

Pilgrim’s Pride is also reshaping its production capacity according to changes in demand. The company announced that it will expand its Ellijay facility in Georgia with an investment of approximately $75 million in June 2026; the investment is expected to particularly increase the production capacity of high-value boneless chicken products such as chicken sandwiches and tenders. [Pilgrim’s Pride]

This trend shows that the growth in poultry is not limited to retail packaged products. Standardized and further processed chicken products continue to be an important supply category for quick service restaurants, fast casual chains, prepared meal producers, and foodservice channels.

What Does This Mean for HORECA and the Food Supply Chain?

If the JBS-Pilgrim’s Pride transaction is completed, the corporate control over one of the world’s largest protein producers’ poultry operations will become even more centralized. However, based on current information, it is still early to say how this will directly reflect on the supply prices for restaurant or hotel businesses.

The broader issue for HORECA businesses is the impact of consolidation in protein supply on supplier diversity, product standardization, contract structures, and pricing power in the long term.

While the scale gained by large producers can create advantages in terms of supply continuity and product standards, dependency on a small number of large suppliers for certain products can pose a separate risk for purchasing teams. Therefore, maintaining an alternative supplier pool is crucial, especially for chain restaurants and corporate catering businesses that use large amounts of poultry.

Stafflink’s View

The most striking aspect of this offer from a HORECA perspective is not the companies’ stock structure but the ongoing scale growth in the protein supply chain.

The consolidation of purchasing, production, and logistics capacities under a single entity by large producers can provide operational efficiency. In contrast, for restaurant and hotel businesses, strong supply management should not only mean finding the lowest unit price.

In our view, especially for chicken and other key proteins, businesses need to monitor price, delivery performance, product specifications, and alternative supplier capacity together. While global mergers may not directly cause price changes in Turkey, the increasing concentration of the food supply chain around larger players emphasizes the importance of supplier diversity in purchasing strategies.