Once and For All Tyson Acquires IBP
by October 15, 2001 12:00 am 649 views
Tyson Foods Inc. finally completed the long-awaited buyout of meatpacking power IBP Inc. from Dakota Dunes, S.D. On Sept. 28, 98 percent of IBP’s shareholders approved the purchase proposed by the Springdale poultry giant.
The original deal had been accepted Jan. 1, but Tyson tried to pull out on March 29. A Delaware Chancery Court forced Tyson to proceed with the acquisition, which Tyson finally completed for a total package of $4.6 billion, including $1.6 billion in IBP debt.
The shareholders’ vote was accepted and announced at a special meeting held at IBP’s headquarters. The two companies also filed a certificate of merger with the Delaware secretary of state. The document, which lists the effective date of the merger, was submitted in Delaware because both companies are incorporated there.
In August, Tyson paid $30 per share in cash for just over half of IBP’s stock. Remaining IBP shares on Sept. 28 were converted to Tyson Class A common stock in a tax-free transaction using an exchange ratio of 2.381.
That means IBP shareholders will receive the equivalent of 2.381 shares of Tyson stock for every share of IBP stock they own. IBP stock is no longer publicly traded.
“We had a vision to combine these companies and create the world’s leading protein provider,” Tyson Foods President, Chairman and CEO John Tyson said.
“[The] merger is an exciting step that accomplishes that vision.”