Tulip Ltd will operate as a business unit within the Pilgrim’s Pride Corporation, the company announced as it confirmed its acquisition of the UK meat processor from Danish Crown.

In a statement issued on October 15, 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 approximately U.S$354 million, based on a 1.22 exchange rate as of August 29, 2019.

Pilgrim’s Pride originally announced the acquisition in August 2019, 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.

Pilgrim’s Pride said in a press release that the acquisition would solidify it as a leading European food company. “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,” Jayson Penn, Pilgrim’s global chief executive officer, said during the initial August announcement.

“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 U.K. market,” Penn said

Tulip, which was previously owned by Danish Crown, 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. Under the terms of the deal, Danish Crown will continue to supply Danish pork to Tulip Ltd under a long-term supply agreement.  Team members from Tulip will be retained, Pilgrim’s Pride earlier stated.

Pilgrim’s Pride employees approximately 51,400 people and operates chicken processing plants and prepared-foods facilities in 14 states, Puerto Rico, Mexico, the UK and continental Europe.