A meat processing company which employs 450 people in Lincolnshire has been sold to a Brazilian firm.
Pilgrim’s Pride Corporation announced on August 28 that it has signed a contract to acquire Tulip Ltd for £290 million.
Tulip has a long heritage in agriculture and is the largest producer of pigs with nearly £1 billion in annual sales and over 6,000 employees across the UK.
The company has a factory in Ruskington which employs 450 people, who produce Scotch eggs, cocktail sausages, and other snack foods.
Under the new agreement with Pilgrim’s Pride, majority owned by Brazilian meat giant JBS, the Danish Crown will continue to supply Danish pork to Tulip Limited under a long-term supply agreement.
Jayson Penn, Pilgrim’s global chief executive officer, said: “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.
“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.
“Tulip Limited’s integrated production platform, consumer-ready innovation capabilities, well-invested assets, established customer relationships and strong leadership team will solidify Pilgrim’s platform for growth in the attractive UK market.”
“We welcome the talented Tulip Limited team members and management team, led by Andrew Cracknell, to the Pilgrim’s family, and we look forward to working together to drive growth and deliver value for our stakeholders,” Penn continued.
“Pilgrim’s is acquiring an industry-leading farming operation, a strong team of dedicated people and a network of well-invested manufacturing sites,” said Andrew Cracknell, CEO of Tulip Limited.
“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.”