Pilgrim's Europe has agreed to acquire UK firm Walkers Deli & Sausage Company from Samworth Brothers. In a statement yesterday (17 August), Pilgrim's Europe, a part of the Pilgrim's Pride business that is majority owned by Brazilian meat giant JBS, described the deal as an "important strategic step". Pilgrim's Pride, in a separate SEC filing, said its subsidiary Onix Investments UK struck a share purchase agreement to acquire Walkers.
The total consideration is around £141.5m ($191.4m) on a "debt-free, cash-free basis", subject to adjustments, according to the filing. The deal extends an established relationship between the companies, with Pilgrim's already supplying Walkers with pork. Founded in 1824, Walkers runs four manufacturing facilities based on one Leicester site and has around 1,150 employees.
The company supplies UK retailers and also produces own-label food. Its portfolio includes sausages, sliced cooked meats, cooked bacon, snacking products and pâté, a range Pilgrim's called "highly complementary". Pilgrim's Europe produces own-label and branded fresh chicken, pork and lamb, alongside chilled and frozen ready meals and snacking lines.
The company employs over 17,000 people across more than 40 sites in the UK, Ireland, France and The Netherlands. Its brands include Moy Park, Richmond and Fridge Raiders. The transaction is expected to be finalised in September, when Walkers becomes a wholly owned subsidiary, the filing read.
It awaits clearance from the Competition and Markets Authority (CMA), along with employee consultation. Ivan Siqueira, the president of Pilgrim's Europe, called the acquisition a "natural strategic fit". "By bringing Walkers into Pilgrim's Europe, we will further strengthen our integrated supply chain, expand our presence in attractive premium pork categories and enhance our ability to serve customers across the UK.
We are excited about the opportunities ahead and look forward to welcoming Walkers' colleagues to the Pilgrim's family following completion of the transaction," Siqueira said. Samworth Brothers CEO Simon Wookey said the sale would help the group direct investment toward "significant growth opportunities" in areas including food-to-go products, savoury pastry and meals. The family-owned business makes chilled and ambient food and generates £1.8bn in turnover.
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