The acquisition of the Ipswich-based pig producer reflected rising demand for high welfare pork, said Tulip. The deal, which will be completed subject to regulatory approval from the Competitions & Markets Authority, was agreed on Friday (September 8).
Tulip’s farming division agriculture director Andrew Saunders said: “Customer demand is rising for pig meat produced to high welfare standards, supported by strong provenance credentials.
‘Capitalising on industry-leading best practices’
“This acquisition forms part of Tulip’s strategic objective to further support the UK pig farming industry, allowing us to more effectively utilise our skills and expertise, capitalising on our industry-leading best practices which have been developed by farmers, vets and other experts within the organisation.”
Easey Holdings will continue to operate independently, and all workers will continue their roles at the pig producer, Tulip confirmed today (September 11). All outstanding customer and supplier contracts and commitments will also be honoured, it added.
The deal was part of the plan to “Brexit-proof” Tulip, the meat processor’s owner, Danish Crown, said.
Danish Crown ceo Jais Valeur said: “Tulip has now successfully completed its profit turnaround and is focusing on cementing the significant progress made during the last year and is planning for the future. This acquisition is in that context and is part of a range of measures designed to Brexit-proof the business.
‘New strategic direction’
“This announcement reflects the significant progress being made with Tulip’s new strategic direction, demonstrating the company’s core values – passion for food and passion for farming.”
Meanwhile, Tulip’s acquisition of Easey holdings came after its chief executive exclusively told FoodManufacture.co.uk that it will invest “up to £70M” in acquisitions, equipment and product innovation next year.
Tulip returned to a trading profit this summer, after it reported a £21.8M loss for the year to September 30 2016.
Tulip acquisitions – at a glance
- Agreed deal to buy pig producer Easey Holdings
- Part of plan to Brexit-proof business
- Easey Holdings to continue independent trading