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Tyson Foods, Inc. (NYSE:TSN) Won Hillshire Brands Co. Bidding Battle

Boston, MA 06/10/2014 (wallstreetpr) – Tyson Foods, Inc. (NYSE:TSN) won the Chicago-based Hillshire Brands Co. bidding battle and agreed to pay $7.8 billion as part of the deal. Tyson Foods believes that the deal will help the company in bolstering the fast growing morning meal segment.

Hillshire’s More Than Expected Premium

Considering the level of growth opportunities found in prepared, portable and breakfast foods which are sold under the Hillshire Farm and Jimmy Dean brands, the premium for the company at the rate of $63 per share in cash is said to be more than expected. Analysts following the deal closely had already warned that this bidding war would lead the winner to pay more-than-expected premium for the deal. The analysts also said that the merger resulting out of this deal would offer a competitive advantage to the winner.

Statement From The CEO Of Tyson Foods

The CEO of Tyson Foods, Inc. (NYSE:TSN), Donnie Smith on June 9, 2014 said that the company paid a full and fair value and that it will help it in creating significant shareholder value in the times to come. Donnie Smith further added that Hillshire is a superadd to their business. Smith added that after the deal, the company anticipated more than $300 million cost savings during first three years. The cost savings will result primarily from supply and operational chain efficiencies. He explained that Tyson Foods had scouted Hillshire since long and that the company had rigid plans towards best strategic fit.

Winning The Bid From Rival Pilgrim’s Pride Corp.

Tyson Foods, Inc. (NYSE:TSN) defeated its rival Pilgrim’s Pride Corp. in a bid in order to get hold of this deal. The offer, which was finalised on June 8, 2014, surpassed the bid from Pilgrim by around $1 billion. Acquisition of Hillshire is the biggest deal for Tyson, passing even the 2001 acquisition of IBP Inc., the beef producer. Tyson Foods, Inc. (NYSE:TSN), in the recent past, completed various small acquisitions as well, which also included Michigan-based Bosco’s Pizza Co.

Published by Alan Masterson

Alan has over 25 years of trading experience in the U.S. equity markets. He began his career in finance working on a program trading desk specializing in over-the-counter stocks. His career progressed from that point to his current position as senior trader on an institutional trading desk. In the evenings, Alan teaches economics at a local community college. He has contributed articles to various publications over the last six years, including feature articles for an economics magazine and various financial blogs. You may contact Alan via his email ([email protected]) or his Google+ page (

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