In a statement issued on 15 October, Pilgrim’s said the transaction had been unanimously approved by its board of directors and was funded with cash on hand. The deal valued Tulip at £290m (or approximately $354m, based on a 1.22 exchange rate as of 27 August 2019).
The move was originally announced in August, when it emerged that Tulip would continue to be managed by current chief executive Andrew Cracknell.
“Pilgrim’s is acquiring an industry-leading farming operation, a strong team of dedicated people and a network of well-invested manufacturing sites,” said Cracknell when the takeover was made public.
“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.”
Danish pork supply continues
Under the terms of the deal, Danish Crown will continue to supply Danish pork to Tulip Ltd under a long-term supply agreement.
Tulip employs more than 6,000 people and provides a wide range of meat products to the retail and foodservice sectors. The company is the country’s largest pig producer and operates 12 production facilities throughout the UK.
Brazilian-owned poultry giant Pilgrim’s employs approximately 51,400 people and operates chicken processing plants and prepared-foods facilities in 14 states, Puerto Rico, Mexico, the UK and continental Europe. The company’s primary distribution is through retailers and foodservice distributors.