Tyson ups offer for Hillshire Brands; Pilgrim’s Pride withdraws
The bidding war for Jimmy Dean sausage maker Hillshire Brands has stepped up a gear with Tyson Foods increasing its offer from $50 a share to $63 a share; and fellow suitor Pilgrim’s Pride, which had offered $55 a share in its latest offer, bowing out of the race.
The latest offer from Tyson - the biggest U.S. chicken processor and a major processor of beef and pork - represents a roughly 70% premium to the price of Hillshire before the bidding began, and would help Tyson build a business in branded meat products.
Chicago-based Hillshire Brands - best known for its Jimmy Dean, Ball Park, Hillshire Farm, State Fair, Aidells and Gallo brands - was created in summer 2012 after Sara Lee spun off its international coffee arm.
The firm, which is on a mission to become the ‘most innovative meat-centric food company in the US’, generated approximately $4bn in annual sales in fiscal 2013.
