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Bastion of UK pig processing heads for Danish ownership

by 5m Editor
1 October 2007, at 1:25pm

UK - Premier UK pork processor Geo. Adams & Sons is falling into Danish hands. The Lincolnshire based company is to join forces with Tulip, Danish Crown's UK division.

Both companies have reached agreement to combine the businesses so creating one of the UK´s strongest meat groups.

The new group will be called Tulip Ltd with Geo. Adams & Sons operating as a division within the group. It will retain brand identity.

Both companies already have a significant presence in the UK market. Geo. Adams & Sons comprises of a fresh meat business and Adams Pork Products Limited, the prepared foods and sliced cooked meat business.

Tulip has invested significantly in the UK market in recent years, in both production and processing sectors. It purchased UK integrated pig production company BQP in 2004, giving Tulip a substantial share of the outdoor-bred pork market. The new group will cover the complete range from farm to fork, including pig production, abattoirs and fresh meat operations, as well as significant bacon, cooked meats and other processed products.

UK sales for the new group will be close to £1.2 billion and it will employ around 9,000 people.

Carsten Jakobsen, Chairman of Tulip Ltd, will Chair the Board of the new group and Mark Adams, Chief Executive of Geo. Adams & Sons, will become an Executive Director and join the main Board.

Strategic
Mr Jakobsen said that the Adams acquisition was an important strategic step forward for Tulip. "This transaction will help us to supply the UK consumer with an even wider range of high quality products. In an increasingly competitive market place, it is crucial that we are in a position to produce quality products at the best value for our customers," he added.

The primary goal is for a closer working relationship with UK supermarket customers and suppliers. However, Danish Crown assured that this would not be at the expense of producer livelihoods. The company is, after all, a successful farmer-owned co-operative-based business.

"We look forward to enhancing the close working relationship with UK livestock farmers and the manufacturing customers that Geo. Adams & Sons has developed so successfully. We are confident our involvement will bring further benefit to all parties,” said Mr Jakobsen.

The acquisition should be completed by the end of November this year.

5m Editor