UK – Pilgrim’s Pride, a meat processing company controlled by Brazil’s largest meat producer, JBS has secured a deal to acquire UK meat processor Tulip from Danish Crown in a transaction valued at £290 million (US$353.79 million)
Under the deal, Pilgrim’s Pride will acquire Tulip’s 12 fresh and value-added operations in the UK, which Danish Crown said will enable the company to simplify its UK business
“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 chief executive officer of Pilgrim’s Pride Jayson Penn.
“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.”
The transaction solidifies Pilgrim’s as a leading European food company, creating one of the largest integrated prepared foods businesses in the UK with a portfolio of brands and retail private label solutions.
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.”
Under terms of the deal, Danish will continue to supply Danish pork to Tulip. Tulip has nearly £1 billion in annual sales and more than 6,000 employees.
The transaction will be funded entirely by Pilgrim’s cash on hand and Pilgrim’s believes that its strong cash flow generation and the additional cash flow resulting from the acquisition will allow the company to maintain its strong credit profile while providing ample free cash flow for delivering and facilitating further strategic acquisitions.
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.