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. 

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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.