Pilgrim’s Pride Corp. announced Oct. 15 that it has completed the previously announced acquisition of Tulip Ltd. -- a leading integrated prepared foods supplier with 12 fresh and value-added operations in the U.K. -- from Danish Crown. Tulip will operate as a business unit within Pilgrim’s, the company said.
The transaction was unanimously approved by the Pilgrim’s board of directors and was funded with cash on hand, valuing Tulip at approximately $354 million.
According to Pilgrim’s, the transaction solidifies its position as a leading European food company, creating one of the largest integrated prepared foods businesses in the U.K. with a portfolio of brands and retail private-label solutions.
“We are pleased to strengthen our European foods platform with the acquisition of Tulip Ltd., which positions Pilgrim’s as a leading global prepared foods player,” Jayson Penn, Pilgrim’s global chief executive officer, said when the acquisition was first announced on Aug. 28. “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’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 U.K. market, Penn added.
Tulip, like Pilgrim’s, has a long heritage in agriculture and protein production. The company is the largest pig producer in the U.K., with nearly £1 billion in annual sales and more than 6,000 team members. Tulip provides a variety of high-quality, innovative products to retail and foodservice customers, utilizing an integrated supply chain with accountability and traceability.
Under terms of the transaction, Danish Crown will continue to supply Danish pork to Tulip under a long-term supply agreement, allowing Tulip to continue providing high-quality products from continental European producers to customers and consumers, the announcement said.