Tyson Foods Inc. has successfully completed the acquisition of AdvancePierre Foods Holdings Inc., a move it says aligns with the company’s strategy to sustainably feed the world with the fastest-growing portfolio of protein-packed brands.
AdvancePierre is a leading national producer of ready-to-eat lunch and dinner sandwiches, sandwich components and snacks. Its customers include foodservice, retail and convenience store providers.
Tyson completed a tender offer to buy all outstanding shares of common stock of AdvancePierre for $40.25 per share in cash, without interest. The offer expired at midnight at the end of June 6, 2017, and was followed by a merger of a wholly owned subsidiary of Tyson Foods into AdvancePierre. The total value of the transaction was approximately $4.2 billion.
AdvancePierre, which employs approximately 4,500 people, generated revenues of $1.6 billion in 2016.
“AdvancePierre is a natural, strategic fit that will extend our capabilities in new and growing food categories,” Tyson president and chief executive officer Tom Hayes said. “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 added that integration teams have been formed and that the company will be focused on maintaining high-quality customer service during the transition.
AdvancePierre is now a wholly owned subsidiary of Tyson, and its shares will cease to be traded on the New York Stock Exchange.