Dive Brief:
- Pilgrim's Pride, which lost to Tyson Foods in a bidding war for Hillshire Brands, is open to other accusations, according to the company's CEO.
- Bill Lovette said Pilgrim's will look to expand its poultry-processing operations by buying operations in regions of the country where it is not already a major presence.
- Among other potential targets, analysts believe, are rivals such as Purdue Farms or Fieldale Farms.
Dive Insight:
Given how little debt Pilgrim's has, the company is well-positioned to borrow and fund acquisitions. And given that Tyson, which is already the biggest chicken processor in the country, will be a more formidable rival to Pilgrim's after the HIllshire buy, it seems inevitable that Pilgrim's will buy something soon.
Perhaps Pilgrim's search for acquisitions has become so obvious that at least one potential takeover target -- Canada's Maple Leaf Foods -- has felt obliged to say that it is not for sale. But maybe other potential buys are quietly letting Mr. Lovette know that they'd welcome an offer.