Pilgrim’s Pride to acquire prepared foods supplier Tulip for $353m

Global poultry and prepared foods company Pilgrim’s Pride has signed a deal to acquire Danish Crown’s integrated prepared foods supplier Tulip for £290m ($353m).

With the acquisition of Tulip, which operates 12 fresh and value-added operations in the UK, Pilgrim’s Pride intends to expand its presence across the UK market.

Pilgrim global chief executive officer Jayson Penn said: “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

“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.”

Pilgrim expects Tulip’s integrated production platform, innovation capabilities, assets and established customer relationships to solidify its growth in the UK market.

The acquisition will be funded by Pilgrim with cash on hand.

As per the terms of the deal, Danish Crown will continue to supply Danish pork to Tulip under a long-term supply agreement.

This agreement will allow Tulip to maintain the supply of products from continental European producers to customers.

Currently, Tulip supplies its products to retail and foodservice customers. It is also one of the largest pig producers in the UK and has a workforce of 6,000 people.

Tulip CEO Andrew Cracknell said: “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.”