JBS-controlled Pilgrim’s Pride has signed a £290 million deal to acquire UK pork producer Tulip Limited from Danish Crown.
The transaction includes Tulip Ltd’s 12 fresh and value-added operations in the UK. Tulip has nearly £1 billion in annual sales and more than 6,000 employees.
Danish Crown said the move forms part of a strategy to simplify its UK business. Under terms of the deal, it will continue to supply Danish pork to Tulip.
“We are pleased to strengthen our European foods platform with the acquisition of Tulip Limited, which positions Pilgrim’s as a leading global prepared foods player,” said Jayson Penn, who was appointed Pilgrim’s CEO in March.
“The transaction represents the logical next step in our evolution to expand our geographical footprint, enhance our value-added portfolio and reduce volatility across our business with a more stable margin profile.
“Tulip Limited’s integrated production platform, consumer-ready innovation capabilities, well-invested assets, established customer relationships and strong leadership team will solidify Pilgrim’s platform for growth in the attractive UK market.”
Penn added: “We welcome the talented Tulip Limited team members and management team, led by Andrew Cracknell, to the Pilgrim’s family, and we look forward to working together to drive growth and deliver value for our stakeholders.”
Andrew Cracknell, CEO of Tulip, added: “Pilgrim’s is acquiring an industry-leading farming operation, a strong team of dedicated people and a network of well-invested manufacturing sites.
“Our companies share a rich heritage in agriculture and food production with aligned values that put people and customers at the heart of all we do. The Tulip Limited leadership team and I look forward to working with our new colleagues to build upon the fantastic progress made within the business and realise our combined growth opportunities as we enter an exciting new phase.”
Pilgrim’s employs more than 51,400 people and operates chicken processing and prepared foods facilities in 14 US states, Puerto Rico, Mexico, the UK and continental Europe.
© FoodBev Media Ltd 2020