The transaction, which was funded with cash on hand, was unanimously approved by the Pilgrim’s board of directors for a price of US$354 million (GBP290 million), according to a notice to the market from JBS, the majority shareholder of Pilgrim’s Pride.
Pilgrim’s Pride initially announced its intent to acquire Tulip Limited in August 2019. Tulip has 12 fresh and value-added facilities in the U.K., and was previously owned by Danish Crown, Europe’s leading pork producer.
Pilgrim’s Pride, in a press release, said the transaction will solidify it as a leading European food company, creating one of the largest integrated prepared foods businesses in the U.K., with a portfolio of brands and retail private label solutions.
The Tulip acquisition furthers Pilgrim’s Pride’s presence in Europe and the United Kingdom. In September 2017, Pilgrim’s Pride acquired Moy Park, the second largest poultry company in the U.K. and the eighth largest broiler company in Europe, for a price of US$1.3 billion.
Under the terms of the latest acquisition agreement, Danish Crown will continue to supply Danish pork to Tulip Limited under a long-term supply contract.
“We are pleased to strengthen our European foods platform with the acquisition of
Team members from Tulip will be retained, Pilgrim’s Pride earlier stated.