US AGRI-GIANT Pilgrim’s Pride has strengthened its position in the UK by snapping up pork processor Tulip Limited for £290m.
The parent company of Moy Park will take possession of 12 fresh and value-added sites in the UK from current owners Danish Crown, which have agreed a long-term pork supply arrangement as part of the deal.
The transaction was funded with cash in hand, according to Pilgrim’s, and represented 5.4X expected EBITDA.
Tulip has annual revenues of close to £1bn and emplys more than 6,000 people.
It marks the latest in a line of acquisitions made by international businesses seeking to exploit the weaker pound and potential export opportunities after Brexit.
In early summer Tyson Foods bought poultry operations in both the UK and the Netherlands from BRF S.A.
Tulip’s chief executive Andrew Cracknell, who formerly led Noble Foods, said “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.
“The Tulip Limited leadership team and I look forward to working with our new colleagues to build upon the fantastic progress made within the business and realise our combined growth opportunities as we enter an exciting new phase.”
“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,” added Jayson Penn, Pilgrim’s global chief executive.