Pilgrim's Pride today announced that we will be filing our proposed plan of reorganization with the U.S. Bankruptcy Court for the Northern District of Texas. This is an important milestone in our restructuring and I wanted to share key highlights of the proposed plan and disclosure statement with you. Attached is a copy of the press release we issued this morning announcing the plan of reorganization, along with a one-page summary of the key points.
The most significant news is that Pilgrim's Pride and JBS have agreed to a transaction representing an enterprise value of approximately $2.8 billion. Under the terms of the plan of reorganization, Pilgrim's Pride has entered into an agreement to sell 64% of the new common stock of the reorganized Pilgrim's Pride to JBS S.A., through its JBS USA Holdings, Inc. subsidiary for $800 million in cash.
Proceeds from the sale of stock to JBS will be used to pay back our creditors as part of the company's reorganization plan. All existing Pilgrim's Pride common stock will be cancelled and existing stockholders will receive 36% of new common stock of the reorganized Pilgrim's Pride. This transaction has the full support of our board of directors and the Pilgrim family.
JBS, which is based on Sao Paulo, Brazil, is one of the largest beef and pork producers in the world. Their annual sales are over $20 billion, and they operate plants all over the world, including 16 facilities in the United States that are part of JBS U.S.A., their subsidiary based in Greeley, Colo.
We are truly excited about the strategic growth opportunities available with JBS as our new majority shareholder. JBS has a well-earned global reputation for operational and service excellence in beef and pork production. Clearly JBS recognizes the tremendous progress we have made in restructuring Pilgrim's Pride and the significant value we could add to their portfolio of brands.
We anticipate little impact on our plants, operations and sales organization from this transaction. Our growers will continue to supply our plants, our plants will continue to operate normally and we'll continue to focus on delivering the best possible service, selection and value to you. Most of senior management will remain in place, as will the sales organization led by Jerry Wilson. I will continue leading the company. We expect to operate as a separate business unit from beef and pork under the JBS umbrella. As such, you should see very little change from your perspective as a customer. While we expect some integration of our corporate functions into the JBS organization, any changes in those areas will be invisible to you.
Over the past 10 months, we have fundamentally restructured Pilgrim's Pride as a market-driven company clearly focused on serving the needs of our customers as efficiently as possible. Thanks to the hard work and shared commitment of our employees, Pilgrim's Pride is positioned to emerge from bankruptcy as a stronger, more efficient company. We are confident that our plan of reorganization will earn the support of all stakeholders and provide the foundation for sustained, profitable growth in the years ahead.
We have developed the attached list of questions and answers and executive summary that you may find useful. If you have any questions, please feel free to call me directly at (903) 434-1534 or call Jerry Wilson, executive vice president of sales and marketing, at (903) 434-1531.
Sincerely,
Don Jackson
President and Chief Executive Officer