Pilgrim’s Pride to acquire Tulip from Danish Crown in US$353m deal
30 Aug 2019 --- Pilgrim’s Pride Corporation is to acquire Tulip Limited, a leading prepared foods supplier with 12 fresh and value-added operations in the UK, from Danish Crown. The transaction creates one of the largest integrated prepared foods business in Britain with a portfolio of brands and retail private label solutions. The transaction, unanimously approved by Pilgrim’s Board of Directors and funded with cash on hand, values Tulip Limited at £290 million (US$353m).
“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,” says Jayson Penn, Pilgrim’s CEO.
“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,” he says.
Tulip Limited, like Pilgrim’s, has a long heritage in agriculture and protein production. The company is the largest pig producer in the UK, with nearly £1 billion (US$1.2 billion) in annual sales and more than 6,000 team members. Tulip Limited provides a variety of high-quality products to retail and foodservice customers, utilizing an integrated supply chain with accountability and traceability.
“Pilgrim’s is acquiring an industry-leading farming operation, a strong team of dedicated people and a network of well-invested manufacturing sites,” adds Andrew Cracknell, CEO of Tulip Limited. “Our companies share a rich heritage in agriculture and food production with aligned values.”
Pilgrim’s is a Brazilian-owned, multinational food company, currently one of the largest chicken producers in the US and Puerto Rico and the second-largest chicken producer in Mexico.
“Pilgrim’s is already strongly positioned within the UK chicken market and would like to strengthen its position within the market for pork. On our part, we want to simplify our UK business. Going forward we will supply Danish pork to Pilgrim’s, so all in all the transaction holds out interesting perspectives for both parties,” says Jais Valeur, Group CEO of Danish Crown.
Under the terms of the agreement, Danish Crown will continue to supply Danish pork to Tulip Limited under a long-term supply agreement, allowing Tulip Limited to continue to provide products from continental European producers to customers and consumers.
Edited by Gaynor Selby
