April 2, 2001 - Pierre Foods in Advanced Buyout Talks

by Joshua Lipsky

Cincinnati-based Pierre Foods is in advanced talks with a management group that reportedly owns 49 percent of the company's outstanding common stock and seeks to purchase, for cash, all shares owned by unaffiliated investors.

Pierre Foods is a leading manufacturer of fully cooked branded and private-label protein and bakery products, and is one of the largest integrated producers of microwavable sandwiches. The company also provides specialty beef, poultry and pork products formed and portioned to meet specific customer requirements. Pierre Foods sells primarily to the foodservice market and serves leading national restaurant chains, primary and secondary schools, vending machines, convenience stores and other niche markets.

A special committee of the company's board of directors has been negotiating the terms of a possible transaction with the management buyout group, according to a news release. Both the committee and the buyout group are being advised by valuation experts. The price range under discussion for the stock owned by public shareholders is significantly lower than the $1.63 price per share last reported by the Nasdaq Stock Market on Friday.

This article reprinted with permission from Meat Marketing & Technology.

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