Pilgrim's Pride Acquires Tulip Limited, Expands Global Reach

Pilgrim's Pride Corporation (NASDAQ:PPC) is committed toward enhancing competency on the back of buyouts. In this regard, the company closed the buyout of Tulip Limited from Danish Crown, which was announced in August. Funded with cash, Tulip Limited was valued at £290 million. With this acquisition, Tulip Limited will form a separate business segment under Pilgrim’s Pride.

The inclusion of Tulip Limited is likely to solidify Pilgrim’s Pride’s geographic presence and enhance its position in the pork market in the U.K. Markedly, Tulip Limited is one of the biggest pig producers in the U.K. The company, with annual sales of roughly £1 billion, offers an array of supreme quality, innovative products to foodservice and retail consumers.

Per the deal, Danish Crown will keep providing Danish pork to Tulip Limited (as part of a long-term supply contract). This, in turn, will enable Tulip Limited to continue offering best quality products from European producers. Thus, Tulip Limited’s addition is expected to fortify Pilgrim’s Pride’s European business and expand its global reach.

Pilgrim’s Pride’s Growth Efforts in Place

Well, Pilgrim’s Pride has been pursuing buyouts and making efforts to expand offerings and strengthen the business. The acquisition of branded chicken products provider, GNP Company, is expected to keep bolstering driving Pilgrim’s Pride’s sales in the upcoming quarters. Additionally, the Moy Park acquisition (poultry and prepared foods provider) is beneficial for Pilgrim’s Pride’s European business.

This apart, Pilgrim's Pride consistently strives to improve portfolio and competitive position through innovation. In this respect, the company has been expanding in the fresh food offerings space. In fact, the launch of fresh chicken products under the premium Pilgrim's brand has been receiving favorable consumer response. Further, this Zacks Rank #3 (Hold) company is on track to expand in the gluten-free products category.

We expect such efforts to continue fueling the stock that has surged 68.4% in a year’s time, comfortably outpacing the industry’s growth of 20.3%.

Don’t Miss These Solid Food Stocks

TreeHouse Foods (NYSE:THS) , with a Zacks Rank #2 (Buy), has a long-term earnings per share growth rate of 13.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

J&J (NYSE:JNJ) Snack Foods (NASDAQ:JJSF) , with a Zacks Rank #2, has an impressive earnings surprise record.

McCormick & Company (NYSE:MKC) , with a Zacks Rank #2, has a long-term earnings per share growth rate of 8%.

Free: Zacks’ Single Best Stock Set to Double

Today you are invited to download our just-released Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.

This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.

Download Free Report Now >>