Pilgrim’s Pride to acquire British pork producer for $354M

GREELEY  — Pilgrim’s Pride Corp. (Nasdaq: PPC) has agreed to buy one of the largest pork producers in Britain for $354 million.

The Greeley-based chicken producer said it plans to buy the 12 processing plants run by Tulip Limited, a subsidiary of Danish Crown AmbA, in an all-cash deal for £290 million using the 1.22 exchange rate between the U.S. dollar and the British pound sterling as of market close Tuesday. That translates to $353.8 billion.

Tulip is the second-largest prepared foods producer in Great Britain, with expected revenues of £2.576 billion/$3.15 billion this year, according to investor slides released by Pilgrim’s Pride. 

Danish Crown plans to continue supplying pork from Danish farms over the long term as part of the acquisition deal.

In a statement, Pilgrim’s Pride CEO Jayson Penn said the transaction gives the company a foothold in the British market.

“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,” he said.

The deal is subject to due diligence and regulatory approval.

A Pilgrim’s Pride spokesman did not respond to requests for additional comment Wednesday.

GREELEY  — Pilgrim’s Pride Corp. (Nasdaq: PPC) has agreed to buy one of the largest pork producers in Britain for $354 million.

The Greeley-based chicken producer said it plans to buy the 12 processing plants run by Tulip Limited, a subsidiary of Danish Crown AmbA, in an all-cash deal for £290 million using the 1.22 exchange rate between the U.S. dollar and the British pound sterling as of market close Tuesday. That translates to $353.8 billion.

Tulip is the second-largest prepared foods producer in Great Britain, with expected revenues of £2.576 billion/$3.15 billion this year, according to investor slides released by Pilgrim’s Pride. 

Danish Crown plans to continue supplying pork from Danish farms over the long term as part of the acquisition deal.

In a statement, Pilgrim’s Pride CEO Jayson Penn said the transaction gives the company a foothold in the British market.

“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,” he said.

The deal is subject to due diligence and regulatory approval.

A Pilgrim’s Pride spokesman did not respond to requests for additional comment Wednesday.