Tyson Foods Inc. has defeated Pilgrim’s Pride Corp. in a two-week battle to buy Hillshire Brands. The final bids were due on Sunday, Tyson offering $63 a share in cash and Pilgrim’s Pride withdrawing its $55 a share bid. Tyson’s acquire of Hillshire would value to company at approximately $7.7 billion.
Hillshire Brands, known for its Jimmy Dean sausages and other packaged foods will expand Tyson Foods Inc. into prepared foods, creating a company “with leading market positions in chicken, breakfast meats, hot dogs, and other categories,” Donnie Smith, the Chief Executive of Tyson told The Wall Street Journal.
Tyson is already the largest meat processor by sales in the United States. The deal is expected to be the meat industries biggest ever.
The deal won’t be complete until the board at Hillshire approves it and they terminate its $4.3 billion deal to acquire Pinnacle Foods Inc. Hillshire would have to pay Pinnacle $163 to break the deal, but this could happen in the next few days.