Source: Lisa M. Keefe, MEATINGPLACE, 8/28/19



Pilgrim’s Pride Corp. has signed a contract to acquire Tulip Limited, an integrated pork supplier with 12 fresh and value-added operations in the United Kingdom, from Danish Crown, the company said in a news release.

Tulip is the largest pig producer in the UK, with nearly £1 billion in annual sales and more than 6,000 team members. The US$354 million transaction was unanimously approved by Pilgrim’s board of directors and funded with cash on hand.

"Pilgrim’s believes that its strong cash flow genFor eration 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," the release said. 

“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," said Jayson Penn, Pilgrim’s global chief executive officer.

Under terms of the agreement, Danish Crown will continue to supply Danish pork to Tulip Limited under a long-term supply agreement, allowing Tulip Limited to continue to provide the highest quality products from continental European producers to customers and consumers.

“Pilgrim’s is already strongly positioned within the UK chicken market and would like to strengthen its position within the market for pork. On our part, we want to simplify our UK business. Going forward we will supply Danish pork to Pilgrim’s, so all in all the transaction holds out interesting perspectives for both parties,” said Jais Valeur, Group CEO of Danish Crown.

Pilgrim’s employs more than 51,400 people and operates chicken processing and prepared foods facilities in 14 U.S. states, Puerto Rico, Mexico, the U.K. and continental Europe. The Danish Crown group is Europe’s largest pork processor, founded in 1887 as a cooperative and still owned by about 7,000 Danish farmers.

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