Tyson Foods says it has completed $4.2 billion buyout of AdvancePierre
by June 7, 2017 11:13 am 882 views
Tyson Foods announced Wednesday morning (June 7) it completed the acquisition of AdvancePierre with 87.27% of the shares tendered at $40.25 per share.
Officials with Springdale-based Tyson Foods announced the $4.2 billion deal a month ago, saying that “AdvancePierre and Tyson are a natural strategic fit and together will accelerate growth for customers by delivering on-trend, high quality products consumers love.”
AdvancePierre produces ready-to-eat lunch and dinner sandwiches, sandwich ingredients, and snacks. Barber Foods is one of AdvancePierre’s most recognizable brands. The company posted full year 2016 net income of $136 million on revenue of $1.56 billion. AdvancePierre has more than 4,000 employees and operates six food production plants in Maine, Ohio and Oklahoma. The company also has food assembly operations in Illinois, North Carolina, Ohio and South Carolina.
AdvancePierre is the second large acquisition for Tyson Foods in the past three years. Tyson in August 2014 acquired Hillshire Foods in a $8.5 billion deal.
“AdvancePierre is a natural, strategic fit that will extend our capabilities in new and growing food categories,” Tyson Foods President and CEO Tom Hayes said in a statement. “We expect the acquisition to immediately contribute to earnings and are also confident it will result in cost synergy benefits of $200 million within three years.”
Hayes said integration teams have been formed and the company will “remain focused on maintaining high quality customer service during the transition.”
A proposed class action lawsuit, filed May 12, is pending against the deal. Lead plaintiff is shareholder Stephen Bushansky who filed on behalf of others similarly situated. The plaintiff claims not all shareholders will benefit equally in this deal. Tyson Foods declined to comment on the case.
Also on May 12, Tyson Foods entered into a new loan agreement with Morgan Stanley acting as lead lender that will provide $1.8 billion to help fund the $4.2 billion acquisition of AdvancePierre Foods.
Shares of Tyson Foods (NYSE: TSN) closed Tuesday at $59.37, and closed up to $60.47 on Wednesday. During the past 52 weeks the share price has ranged from a $77.05 high to a $55.72 low.