Tyson wins the bidding war

Tyson Foods wins the bidding war over Pilgrim’s Pride for Hillshire Farms.  Over the weekend, Tyson submitted a unilateral binding offer to acquire all outstanding shares of The Hillshire Brand Company for a price of $63 per share in cash.  The all-cash transaction is valued at approximately $8.55 billion.

Tyson president and chief executive officer says the acquisition would be a defining moment for the company.  “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,” he says.  “Now we will have those iconic #1 and #2 brand in numerous categories.”  The combination of Tyson and Hillshire Brands would reposition Tyson as a leader in retail sale of prepared foods with $39.4 billion in annual sales and $1.2 billion in net income.

According to Tyson’s website, the offer is subject to Hillshire Brands being released from its existing agreement to acquire Pinnacle Foods.

Add Comment

Your email address will not be published.


Stay Up to Date

Subscribe for our newsletter today and receive relevant news straight to your inbox!