Pilgrim’s Pride Scoops Up Prepared Foods Firm for $354M

September 3, 2019

2 Min Read
Pilgrim’s Pride Scoops Up Prepared Foods Firm for $354M

Poultry processor and prepared foods manufacturer Pilgrim’s Pride is expanding its footprint in Europe with the $354 million purchase of prepared foods supplier Tulip Limited from Denmark-based food processing company Danish Crown.

“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 global chief executive officer of Pilgrim’s, Jayson Penn, said in a recent press release. “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.”

The purchase of Tulip Limited will create one of the biggest integrated prepared foods business in the UK, the American firm’s release said. Serving retail and foodservice customers, Tulip is the largest pig producer in the U.K. and generates about £1 billion each year in sales.

Under the terms of the deal, Danish Crown will supply Danish pork to Tulip Limited under a long-term supply contract. The company currently employs over 6000 workers. 

“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,” Jais Valeur, group CEO of Danish Crown, said in a statement. 

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