Pilgrim’s Pride, the US-based subsidiary of Brazilian meat giant JBS, has signed a contract to acquire Tulip, the UK’s biggest pork producer, from Danish Crown in a deal worth £290m.
The transaction includes Tulip’s 12 production sites in the UK which employ more than 6,000 staff. Supplying retail and foodservice customers with pork-based products, the firm generates annual sales of nearly £1bn.
Danish Crown stated that the sale was part of a strategy to simplify its UK business. Under terms of the deal, it will continue to supply Danish pork to Tulip as part of a long term agreement.
The company has been cutting jobs across its European business as part of a major cost reduction programme. The Tulip unit has borne the brunt of the cuts due to weakening profits in the business.
Having acquired Northern Ireland-based poultry producer Moy Park back in 2017, Pilgrim’s Pride will now be the biggest chicken and pork producer in the UK.
“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, Pilgrim’s Global Chief Executive Officer.
“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.”
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…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 operates chicken processing and prepared foods facilities in the US, Puerto Rico, Mexico, the UK and continental Europe.
NAM Implication:
- Make way for the biggest chicken and pork producers in the UK!
