|Tyson's purchase of Hillshire Brands improves its position in prepared foods with a particular focus on the growing breakfast day part.|
SPRINGDALE, ARK. — Pinnacle Foods has stepped aside, Pilgrim’s Pride has been outbid and now Tyson Foods, Inc. is in the process of acquiring Hillshire Brands. The two companies have entered into a previously announced agreement in which Tyson will acquire all outstanding shares of Hillshire Brands for $63 per share. The all-cash transaction is valued at approximately $8.55 billion.
“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 chief executive officer 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 companies said the transaction has been unanimously approved by the boards of directors of both companies and is anticipated to close by Sept. 27, the last day of Tyson Foods’ fiscal year.