Its Official: Tyson Foods, Hillshire Complete Merger

Tyson Foods and Hillshire Brands Co. have completed the largest merger in the history of the U.S. meat industry.

Tyson Foods announced its successful acquisition Aug. 28, along with details on a new leadership team that includes a mix of existing senior leaders from its own company and Hillshire Brands.

Tyson Foods formally struck a deal in early July to buy Hillshire Brands for $8.5 billion after winning a bidding war against Pilgrim’s Pride.

On Wednesday, Tyson said it had agreed to sell its Midwest sow-purchasing division, Heinold Hog Markets, to resolve antitrust concerns by the Justice Department over the Hillshire acquisition.

Now that the two companies are officially one, shares of Hillshire Brands common stock will be delisted and cease trading on the New York Stock Exchange and Chicago Stock Exchange before the opening of the respective markets on Aug. 30.

“During this process, I’ve had a chance get to know many people on the Hillshire Brands team and the great work they’re doing, and I’m more convinced than ever that the future of our combined companies is bright,” Tyson Foods Donnie Smith said in the news release. “As excited as I am about our new brands, I’m equally excited about the combined talent of the two companies.”

An interview with Smith made available by Tyson Foods is available here.

Sean Connolly, former president and CEO of Hillshire Brands, has chosen to pursue other interests, according to the release, but will stay on as a consultant during the integration process.

Andy Callahan, former president of Hillshire’s retail business, will manage all retail consumer brands, including the legacy Hillshire consumer brands (such as Jimmy Dean, Ball Park, Hillshire Farm and Sara Lee), Tyson’s consumer brands (such as Tyson frozen, value-added poultry and Wright Brand bacon) and Hillshire’s Gourmet Food Group.

Sally Grimes, former chief innovation officer and president of Hillshire’s Gourmet Food Group, will lead Tyson’s innovation (including research and development), sales and global brand strategy teams to support all products sold through retail channels and to maximize global growth of our consumer brands.

Donnie King, former president of prepared foods, customer and consumer Solutions for Tyson Foods, will oversee Tyson’s legacy poultry, fresh meats and non-branded prepared foods businesses, as well as the combined Tyson Foods and Hillshire foodservice businesses.

Those reporting to him will include Steve Stouffer, who will lead fresh meats; Noel White, who will lead poultry; Wes Morris, who will lead prepared foods operations; and Tom Hayes, currently chief supply chain officer for Hillshire Brands, who will lead the combined Tyson and Hillshire foodservice businesses.

Those continuing to report to Donnie Smith will include David Van Bebber, who leads the Tyson legal team; Sara Lilygren, who leads corporate affairs; Dennis Leatherby, who continues as the company’s chief financial officer; Hal Carper, who heads strategy and new ventures; Mike Roetzel, who oversees operations services; and Russell Tooley, who heads the company’s business process and continuous improvement practice.

Ken Kimbro, who has led Tyson Foods’ human resources functions since 2001, will be transitioning into retirement. He will be replaced by Mary Oleksiuk, former chief human resources officer for Hillshire Brands.

Malik Sadiq, senior vice president-Asia Pacific, will oversee Tyson International on an interim basis. He takes the place of James Young who will be transitioning to our Cobb-Vantress breeding stock subsidiary in the coming months.

“This is an awesome team and they’re prepared to make this integration process smooth and efficient while we continue to exceed the expectations of our customers and consumers,” Smith said.