Pilgrim’s Pride Corp., the U.S. poultry supplier majority-owned by JBS, has signed a contract to acquire United Kingdom pork producer Tulip Limited from Danish Crown.
The U.S. $354-million transaction was unanimously approved by Pilgrim’s board of directors and funded with cash on hand.
Tulip is the largest pig producer in the UK, selling branded and own-label products to the country's retail chains, as well as supplying the foodservice channel. This integrated pork supplier has 12 fresh and value-added operations in the United Kingdom.
“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.
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, a company release said.
“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 was founded in 1887 as a cooperative and is still owned by about 7,000 Danish farmers.
More from Farm Journal's PORK:
U.S. Pork and Beef Can Win on a Level Playing Field, USMEF Says