Boston, MA 05/05/2014 (wallstreetpr) – It is just a matter of time before the chicken producer and processor Pilgrim’s Pride Corporation (NASDAQ:PPC) announces a big deal. The company announced intent to make a major acquisition before long as it seeks to grow. The announcement about a hunt for a deal came just when the company emerged from a strong Q1 during which earnings increased significantly over a year earlier.
Pilgrim’s Pride Corporation (NASDAQ:PPC) may enter a deal with a smaller player in the poultry and frozen food processing industry or it could go for a bigger player in the industry. According to CEO Bill Lovette, the company is not limited on what it can do at present. He said the company currently has a solid balance sheet that should support acquisition of any scale.
Talk about a strong balance sheet and Pilgrim’s Pride Corporation (NASDAQ:PPC) announced a significant reduction in its debt position in the latest quarter. The company ended Q12014 with debt of $155 million, yet it had a bloated debt position of $1.1 billion a year earlier. According to the CEO, the reduction in debt gives the company the capacity to borrow more and big money to finance future acquisitions.
Industry of deals
Pilgrim’s Pride Corporation (NASDAQ:PPC) is not the only one talking about deals in the food industry. A number of food transactions have been made in recent weeks and months. For example, Hillshire Brands Co (NYSE:HSH) paid $165 million on April 21 to add Van’s Natural Foods to its portfolio. On the same day that HSH made the $165 million transaction, TreeHouse Foods Inc (NYSE:THS) acquired Protenergy Natural Foods for $150 million. As if that was not enough, a week later Post Holdings Inc (NYSE:POST) reached out for Michael Foods Inc with a $2.45 billion deal.
No opportunity lost
Pilgrim’s Pride Corporation (NASDAQ:PPC) believes that, despite the flurry of acquisitions that have been seen in the foods industry, there are still great deals to support its goal.
The company reported 80 percent increase in profit on a year-over-year basis in Q12014. Therefore, net income in the quarter was $98.1 million or 38 cents per share. That compared with net income of $54.6 million or 21 cents per share in Q12013.
