Tyson submits final offer for Hillshire Brands

Hillshire Brands confirmed receiving a binding offer from Tyson but no surety that any transaction will result; Pilgrim Pride retracts bids

Tyson Foods, Inc. announced it has submitted a unilaterally binding offer to acquire all outstanding shares of The Hillshire Brands Company for a price of $63 per share in cash, an all-cash transaction valued at $8.55 billion. The offer is subject to Hillshire Brands being released from its existing agreement to acquire Pinnacle Foods Inc. in accordance with the terms thereof. It follows a bidding process conducted by Hillshire Brands that concluded Sunday, June 8, 2014.   As result of the Tyson annoucement, Pilgrim's Pride Corporation announced that it has withdrawn its proposal to acquire The Hillshire Brands Company.

“The Hillshire Brands acquisition would represent a defining moment for Tyson Foods,” said Donnie Smith, Tyson’s president and chief executive officer. “Our strategy has been to grow our prepared foods business, and it has been our aspiration to be a leader in retail prepared foods just as we are in chicken. Now we will have those iconic #1 and #2 brands in numerous categories.”

The Hillshire Brands Company confirmed that it has received a unilateral binding offer from Tyson Foods for the Hillshire Brands and the Tyson Foods offer by its terms remains in place until the earlier of the termination of the Hillshire Brands/Pinnacle merger agreement or December 12, 2014. 

According to a company statement, the Hillshire Brands board of directors has not approved the Tyson Foods offer, has not changed its recommendation regarding the Pinnacle merger and is not making any recommendation with respect to the Tyson offer.  Hillshire Brands does not have the right to terminate the merger agreement with Pinnacle Foods on the basis of the Tyson Foods offer or enter into an agreement with Tyson Foods prior to its termination.  There can be no assurance that any transaction will result from the Tyson Foods offer.

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