GREELEY, COLO. – Pilgrim’s Pride Corp., a subsidiary of Brazil-based JBS SA, announced on Aug. 28 that it will acquire Tulip Ltd., a United Kingdom-based meat processor and subsidiary of Danish Crown for $354 million.
Tulip is the U.K.’s largest pork producer with nearly £1 billion in annual sales and more than 6,000 team members.
“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,” said Jayson Penn, global chief executive officer of Pilgrim’s. “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.”
Included in the deal are Tulip’s 12 operations in the U.K. As part of the agreement, Danish Crown will continue to supply Danish pork to Tulip under a long-term supply contract.
“Pilgrim’s is acquiring an industry-leading farming operation, a strong team of dedicated people and a network of well-invested manufacturing sites,” said Andrew Cracknell, c.e.o. of Tulip Ltd. “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.”
Mr. Cracknell took over as c.e.o. of Tulip in 2018. Tulip produces pork, sausages, bacon along with other cooked and canned meats. Danish Crown has owned the company since 1998.
“Pilgrim’s is already strongly positioned within the U.K. chicken market and would like to strengthen its position within the market for pork,” said Jais Valeur, group c.e.o. of Danish Crown. “On our part, we want to simplify our U.K. business. Going forward we will supply Danish pork to Pilgrim’s, so all in all the transaction holds out interesting perspectives for both parties.”