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 the disclosure statement with you. Attached is a copy of the press release we issued this morning announcing the plan of reorganization.
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.
For those of you who are not familiar with JBS S.A., which is based on Sao Paulo, Brazil, they are 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.
After our plan of reorganization is approved by the Bankruptcy Court later this year, JBS will become the majority owner of Pilgrim's Pride. What does this mean for you? We expect there to be no significant impact to our supplier base or to our plants, operations and sales organization. We expect to operate as a separate business unit from beef and pork under the JBS umbrella. Most of senior management will remain in place, although there will be some integration of our corporate functions into the JBS organization.
I know that you will have questions over the next several months as we move the final steps of our reorganization. We have developed the attached list of questions and answers that may be useful to you, along with a summary of the key points of our reorganization plan. These will also be posted in the suppliers' section of the "Reorganization" page of our corporate website at www.pilgrimspride.com.
Over the past 10 months, we have fundamentally restructured Pilgrim's Pride as a market-driven company clearly focused on delivering the best service, selection and value to our customers as efficiently as possible. Thanks to the hard work and shared commitment of our growers and employees, Pilgrim's Pride is positioned to emerge from bankruptcy as a stronger, more efficient company.
We are truly excited about the strategic growth opportunities available with JBS as our majority shareholder. 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. Thank you for your continuing support throughout this reorganization process.
Sincerely,
Don Jackson
President and Chief Executive Officer