Latest headlines

Tyson wins fight over Hillshire Brands

Tyson wins fight over Hillshire BrandsAfter a back and forth bidding war with Pilgrim’s Pride, poultry titan Tyson Foods, Inc. announced today it is ready to purchase Hillshire Brands for a cash offer of $63 per share.

The deal, valued at $8.55 billion including Hillshire debt, tops Tyson’s original $50-per-share offer and both offers by Pilgrim’s Pride which increased its offer last week to $55 per share. All offers were unsolicited by Hillshire and began about two weeks ago with the initial offer from Pilgrim’s Pride.

Upon the announcement of today’s offer from Tyson, Pilgrim’s Pride said the company is withdrawing its proposal.

Tyson said the offer is subject to Hillshire Brands being released from its existing agreement to acquire Pinnacle Foods Inc.

“The Hillshire Brands acquisition would represent a defining moment for Tyson Foods,” said Donnie Smith, Tyson’s president and chief executive officer in a statement.  “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 #1 and #2 brands in numerous categories.”

Chicago-based Hillshire, which includes brands such as Hillshire Farms, Ball Park and Jimmy Dean, confirmed it received the offer from Tyson, but was clear no decision by its board has been made and is not making any recommendations at this time relating to outstanding offers or agreements.

Tyson representatives pointed to the strength of Hillshire’s portfolio in the breakfast product market as a critical asset to the company.

Following an acquisition, Tyson expects to see an annual financial benefit of more than $300 million.

Tyson said the offer was unanimously approved by its board and will remain in effect until Dec. 12, which is the final termination date of the Hillshire Brands agreement with Pinnacle.

Based in Arkansas, Tyson Foods is one of the world’s largest processors and marketers of chicken, beef and pork with about 115,000 employees serving customers in 130 countries.

Did you enjoy this article? Click here to subscribe to Food Engineering Magazine.

Recent Articles by Jeremy Gerrard

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

Food Engineering's Food Automation & Manufacturing Conference and Expo 2015

Images from Food Engineering's Food Automation & Manufacturing Conference and Expo in Clearwater Beach, Florida, April 12-15, 2015. The event brought food and beverage processors and suppliers together to gain valuable information on the latest trends and technologies in manufacturing, automation, sustainability and food safety.

Podcasts

Burns & McDonnell project manager RJ Hope and senior project engineer Justin Hamilton discuss the distinctions between Food Safety and Food Defense as well as the implications for food manufacturers of the Food Safety Modernization Act.
More Podcasts

Food Engineering

Food Engineering May 2015 Cover

2015 May

The May 2015 issue of Food Engineering explores effective tools for hitting manufacturing targets. Also, read how processors are looking for faster ways to detect harmful pathogens in food and beverages without sacrificing accuracy or reliability.

Table Of Contents Subscribe

Plant Facility/Site Issues

What issue about your current plant facility/site keeps you up the most at night?
View Results Poll Archive

THE FOOD ENGINEERING STORE

Food-Authentication-Flyer-(.gif
Food Authentication Using Bioorganic Molecules

This text provides critical tools and data needed to augment routine food analysis and enhance food safety by aiding in the detection of counterfeit, and potentially deleterious, foods.

More Products

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

STAY CONNECTED

FE recent tweets

facebook_40.pngtwitter_40px.pngyoutube_40px.png linkedin_40px.pngGoogle +

Food Master

Food Engineering Food Master 2015Food Master 2015 is now available!

Where the buying process begins in the food and beverage manufacturing market. 

Visit www.foodmaster.com to learn more.