Tulip and Flagship Foods to merge

by 5m Editor
11 May 2004, at 12:00am

UK - Flagship Foods Limited and Danish Crown have reached agreement to combine the businesses of Flagship Foods Ltd and Danish Crown's UK subsidiary Tulip Limited creating one of the UK's largest meat groups. The new group will be called Tulip Ltd.

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Flagship group comprises Roach Foods Ltd, Dalehead Foods Ltd, Flagship Fresh Meats Ltd (the business acquired from Glanbia PLC in 2003) and BQP. Tulip Ltd has several processing factories in the UK including Hygrade acquired in 2003.

The new group plans to 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 further processed products. The UK sales of the new group will be close to 31 billion, and it will employ almost 7,000 people across 21 sites.

Carsten Jakobsen, present chairman of Tulip Ltd, will chair the board of the new group and Graham Roach, chief executive of Flagship Foods, will become an executive director. Flagship chairman Tony Ambler will also join the board and continue to be involved with and maintain responsibilities for the group's primary production activities.

Graham Roach said: "We have a long and successful partnership with Danish Crown as a major supplier, so bringing these businesses together makes a lot of sense.

"In an increasingly competitive marketplace it is crucial that we are in a position to produce quality products at the best price. This merger will benefit our customers, suppliers and employees."

Carsten Jakobsen said: "This is an important strategic step forward for Tulip. This transaction will help us to supply the UK consumer with an even wider range of quality meat products.

"We are delighted that the two companies will be joining forces and see ourselves as a UK meat business which is set to work closely with our UK supermarket customers and suppliers.

"We look forward to enhancing the close working relationship with UK livestock farmers and manufacturing customers that Dalehead Foods has developed so successfully, and we are confident our involvement will bring further benefit to all parties."

The transaction is conditional upon competition clearance by the European Commission. Both parties have agreed not to publish financial details of the deal.

Flagship Foods Tulip Ltd Danish Crown
Annual sales, 3m 443 403 3,670
No. of employees 3,700 3,000 23,000
Market areas UK UK Worldwide
Annual pig killings, mill. heads 1.6 20.1
Based in Bodmin Warwick Denmark
Ownership UK shareholders Danish Crown Danish Farmers

Source: National Pig Association - 9th May 2004

5m Editor