Greeley, Colorado, USA-headquartered Pilgrim’s Pride Corporation on October 15 announced the completion of its purchase of Tulip Ltd from Danish Crown for £290 million. The deal, struck in late August, solidifies Pilgrim’s as a leading European value-added food company, creating one of the largest integrated prepared foods businesses in the United Kingdom with a portfolio of brands and retail private label accounts.
“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,” said Jayson Penn, Pilgrim’s global chief executive officer. “Tulip Limited’s integrated production platform, consumer-ready innovation capabilities, well-invested assets, established customer relationships and strong leadership team will solidify our platform for growth in the attractive UK market.”
“Pilgrim’s has acquired an industry-leading farming operation, a strong team of dedicated people and a network of well-invested manufacturing sites,” said Andrew Cracknell, chief executive officer of Tulip Limited. “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 realize our combined growth opportunities as we enter an exciting new phase.”
Tulip Limited, like Pilgrim’s, has a long heritage in agriculture and protein production. The company is the largest pig producer in Britain, with nearly £1 billion in annual sales. It provides a variety of high-quality, innovative products to retail and foodservice customers as well as to wholesalers and exporters, utilizing an integrated supply chain with accountability and traceability. The portfolio includes value-added pork products ranging from sausages and bacon to slow-cooked BBQ pulled pork and much more.
“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,” said Jais Valeur, Group CEO of Danish Crown.
Under terms of the transaction agreement, Danish Crown will continue to provide Danish pork to Tulip Limited under a long-term supply agreement, allowing Tulip Limited to continue to offer the highest quality products from continental European producers to customers and consumers.
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. The company’s primary distribution is through retail and foodservice channels.
About Danish Crown
The Danish Crown group is among the world’s largest pork exporters and is Europe’s largest pork processor. It is also among the largest meat processing companies in Europe. The company was founded in 1887 as a cooperative and the ownership still belongs to approximately 7,000 Danish farmers.
About Tulip Limited
Tulip Limited employs more than 6,000 people and provides a wide range of innovative quality fresh, frozen and canned meat products to the retail and foodservice sectors. The company is the United Kingdom’s largest pig producer and operates 12 production facilities throughout the country.