Pilgrim’s Europe agreed to buy Walkers Deli & Sausage Company from Samworth Brothers, pending approval from the U.K. Competition and Markets Authority and employee consultation.
Walkers operates four production facilities on a single site in Leicester and employs about 1,150 people. Pilgrim’s said the deal expands its footprint in the U.K. and strengthens its position in premium pork categories, building on an existing supply relationship in which Pilgrim’s already provides some of Walkers’ raw pork needs.
The acquisition adds a business with premium sausages, sliced cooked meats, cooked bacon, snacking products and pâté to Pilgrim’s Europe portfolio. Walkers supplies major U.K. retailers and focuses on premium own-label production.
Pilgrim’s said the move is part of its strategy to grow through value-added food businesses. The company employs about 63,000 people across protein processing and prepared-food facilities in the U.S., Puerto Rico, Mexico, the U.K., Ireland and continental Europe.
Samworth Brothers said the sale will let it focus investment on food-to-go, savory pastry, meals and its branded portfolio. The market has reacted to these announcements by moving the company's shares 2.71% to a price of $28.655. Check out the company's full 8-K submission here.
