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SPRINGDALE, Ark. and CINCINNATI — Tyson Foods Inc. and AdvancePierre Foods Holdings Inc. have entered into a definitive merger agreement through which a subsidiary of Tyson will acquire all of AdvancePierre's outstanding common shares for $40.25 per share in cash. The total value of the deal is approximately $4.2 billion, including $3.2 billion in equity value and $1.1 billion in assumption of AdvancePierre debt.
The merger will provide a unique opportunity to create value by joining highly complementary market-leading portfolios, the companies said.
"We are very pleased to announce this combination with AdvancePierre," said Tyson President and CEO Tom Hayes. "The AdvancePierre leadership team has created significant value through the implementation of a new business management model, focus on quality and service and attention to the growth opportunities in convenience foods. The addition of AdvancePierre aligns with our strategic intent to sustainably feed the world with the fastest growing portfolio of protein packed brands."
Hayes noted that Tyson is always evaluating opportunities to leverage its strengths to drive future growth, whether this is through divesting non-core, non-protein focused assets or by acquiring companies that enhance its capabilities in growing categories.
"We couldn't be more delighted to join Tyson. By combining our complementary, market-leading portfolios, both companies will realize greater opportunities," said AdvancePierre President and CEO Christopher D. Siva. "This combination will allow AdvancePierre to accelerate its growth and broaden its distribution network by leveraging Tyson's existing distribution infrastructure and go-to-market capabilities. Importantly, the transaction also offers compelling and certain value for our shareholders and will provide long-term benefits for our team members and customers."
According to Tyson, benefits of the merger include the joining of market leaders with complementary product portfolios; furthering of Tyson's leadership in prepared foods segment; enhancement of Tyson's financial profile; and the creation of significant cost and revenue synergies.
Springdale, Ark.-based Tyson, one of the world's largest food companies, supplies retail and foodservice customers throughout the United States and approximately 115 countries. The company offers an array of private label products.
Headquartered in Cincinnati, AdvancePierre is a supplier of value-added protein and handheld convenience products to the foodservice, school, retail, club, vending and convenience store channels. The company makes and distributes a full line of packaged sandwiches, fully cooked chicken and beef products, Philly-style steak, breaded beef, pork and poultry, and bakery products.