Pilgrim's Acquires Walkers
Pilgrim's Europe Set to Acquire Walkers Deli & Sausage for £141.5M, Boosting UK Premium Pork
Key Points
The acquisition is being conducted by Pilgrim's Pride Corp, via its UK subsidiary Onix Investments UK Limited, with a debt-free, cash-free consideration of about £141.5 million to be paid in cash on completion; Walkers Deli & Sausage will become a wholly-owned subsidiary of Pilgrim's Pride at completion.
Walkers Deli & Sausage brand has a multi-decade lineage: Walkers’ brand was created in 1996 by Samworth Brothers after acquiring Walker & Son of Leicester in 1986, with the Walkers name tracing back to the original Walker & Son business established in 1824.
Walkers operates four production facilities on a single site in Leicester and currently employs around 1,150 people.
Walkers' product portfolio includes premium sausages, sliced cooked meats, cooked bacon, snacking products, and pâté, highlighting its emphasis on premium, own-label production for UK retailers.
Pilgrim's Pride Corp. is buying Walkers Deli & Sausage Company from Samworth Brothers for £141.5 million — about $191.9 million — in an all-cash deal, according to MarketWatch. The acquisition will be carried out through Pilgrim's UK subsidiary, Onix Investments UK Limited, and is subject to approval from the UK's Competition and Markets Authority (CMA) and employee consultation.
Walkers, a Leicester-based producer of premium pork products, employs around 1,150 people across four production facilities on a single site. Once the deal closes, Walkers will become a wholly-owned subsidiary of Pilgrim's Pride, TradingView reported.
A Heritage Brand Dating Back Two Centuries
Walkers has deep roots in Leicester. The Walker & Son business was first established in 1824. Samworth Brothers acquired Walker & Son in 1986. Ten years later, in 1996, Samworth created the modern Walkers Deli & Sausage brand, according to Food Processing.
Today, Walkers produces premium sausages, sliced cooked meats, cooked bacon, snacking products, and pâté. The company focuses heavily on own-label production for UK retailers. That premium positioning is a key reason Pilgrim's Europe pursued the deal, Asian Trader reported.
Pilgrim's Europe Gains Ground in UK Pork Market
For Pilgrim's Europe, this deal is a strategic push into value-added premium pork. Pilgrim's Europe already had an existing supply relationship with Walkers before the acquisition. Executives described Walkers as a "high-quality, heritage brand" with a "skilled team and strong innovation credentials," according to Pig World.
The deal fits Pilgrim's Europe's broader goal to diversify its portfolio and grow its European platform. Executives see "significant opportunities" to improve the integrated supply chain and serve UK retailers more broadly, Asian Trader reported.
1,150 Jobs and Four Sites Remain in Leicester
Walkers runs all four of its production facilities on one site in Leicester. That setup will not change under new ownership. The company's operations are expected to remain centered in Leicester after the deal closes, according to Pig World.
The deal also requires a formal employee consultation process in the UK before it can be completed. Around 1,150 workers are employed at the site. No changes to staffing have been announced, Food Processing noted.
CMA Review Stands as Final Hurdle to Completion
The Competition and Markets Authority must sign off on the deal before it can close. The CMA reviews acquisitions to make sure they do not harm competition in UK markets. No timeline for the review has been made public, according to TradingView.
The £141.5 million price is set on a debt-free, cash-free basis. That means the final cash payment will be adjusted for any debt or cash held by Walkers at the time of completion, MarketWatch reported.
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