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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.
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