JBS releases Danish Crown from Tulip Limited

Danish Crown has sold its loss-making British sister company Tulip Limited to American Pilgrim's Pride, a publicly traded company from Brazil. Converted, the acquisition price amounts to approximately €321 million. 

Tulip has 12 locations in the United Kingdom and processes some 200.000 tons of Danish and British pork per year, especially bacon. Tulip has been loss-making for a few years and is depressing the results of Danish Crown. In the past broken financial year (2017/2018), the loss amounted to approximately €35 million† Despite various frantic attempts to turn the tide, this was not successful.

$75 million loss
American Pilgrim's Pride is owned by JBS Foods, which is by far the largest meat concern in the world. They want to strengthen their position on the British market and thus see potential in Tulip. The company is already active there with poultry meat.

The acquisition price is lower than Tulip's book value. That means Danish Crown takes a loss of almost €67 million. Danish Crown will continue to supply Tulip with raw material from Danish pigs in the future.

Wouter Job

Wouter Baan is Head of Meat & Dairy at BoerenbusinessAt DCA Market Intelligence, he focuses on dairy, pork, and meat markets. He also monitors (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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