Tyson Foods set to acquire Hillshire Brands

SPRINGDALE, Ark. & CHICAGO — Tyson Foods and Hillshire Brands last week announced an agreement under which Tyson Foods will acquire all outstanding shares of Hillshire Brands. The all-cash transaction is valued at $8.6 billion, which includes Hillshire Brands' oustanding net debt. Additionally, Tyson Foods will make a payment of $163 million to cover the termination fee that resulted in Hillshire Brands' terminated merger agreement with Pinnacle Foods.

“By investing in Hillshire Brands and its collection of leading brands, we have a unique opportunity to transform an important segment of our business, and position Tyson Foods to meet American consumers’ growing demand for protein at breakfast and throughout the day,” said Donnie Smith, president and CEO of Tyson Foods. “We operate in a competitive and complex marketplace that demands bold steps to remain an industry leader. I am confident that together Tyson Foods and Hillshire Brands have the right products and the right people to create years of enhanced shareholder value and ensure more choices for our customers and consumers.”

The combination of the two companies is promising, as it will help reposition Tyson as a leader in the prepeared foods category, the companies said. Hillshire Brands' robust roster of products in the breakfast category also will allow Tyson to capture numerous opportunities.

“We are confident that the two companies can learn a great deal from each other, and we recognize that Hillshire Brands’ value comes from its people, brands and processes. As we begin planning how to bring these companies together, we intend to proceed in a thoughtful manner that honors the strengths embedded in both cultures that have made each of them successful," Smith said.
 

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