- WHITE PAPERS
Tyson Foods Inc. today announced it has submitted a unilaterally binding offer to acquire all outstanding shares of The Hillshire Brands Company for a price of $63 per share in cash. The offer is subject to Hillshire Brands being released from its existing agreement to acquire Pinnacle Foods Inc., and follows a bidding process conducted by Hillshire that concluded Sunday.
The all-cash transaction is valued at approximately $8.55 billion, including Hillshire Brands' outstanding net debt.
"The Hillshire Brands acquisition would represent a defining moment for Tyson Foods," Tyson CEO Donnie Smith said in a news release. "Our strategy has been to grow our prepared foods business, and it has been our aspiration to be a leader in retail prepared foods just as we are in chicken. Now we will have those iconic No. 1 and No. 2 brands in numerous categories."
The company said the brands’ combination would reposition Tyson as a “clear leader” in the retail sale of prepared food, and in particular, the strength of Hillshire’s products in the breakfast category would “allow Tyson to capture opportunities in this attractive and fast-growing daypart.”