Tyson Foods, Hillshire Reach Definitive Agreement For $8.5 Billion Acquisition

Tyson Foods Inc. of Springdale announced Wednesday it has entered into a “definitive agreement” to acquire all outstanding shares of The Hillshire Brands Co. for $63 per share.

The all-cash transaction is worth $7.73 billion, or $8.55 billion including Hillshire Brands’ outstanding debt, according to a Tyson news release. The transaction has been unanimously approved by the boards of directors of both companies and is anticipated to close by September 27, the last day of Tyson Foods’ fiscal year. 

Tyson will also pay the $163 million termination fee associated with the termination of Hillshire Brands’ merger agreement with Pinnacle Foods Inc., which was announced earlier this week.

The combination of Tyson and Hillshire Brands would reposition Tyson as a clear leader in the retail sale of prepared foods, with a complementary portfolio of well-recognized brands, including Tyson, Wright Brand, Jimmy Dean and Ball Park.

“By investing in Hillshire Brands and its collection of leading brands, we have a unique opportunity to transform an important segment of our business, and position Tyson Foods to meet American consumers’ growing demand for protein at breakfast and throughout the day,” Tyson president and CEO Donnie Smith said in the release. “We operate in a competitive and complex marketplace that demands bold steps to remain an industry leader.”