Tyson Wins Bid for Hillshire Brands with $7.7 Billion Deal

Tyson's acquisition of Hillshire Brands is valued at $8.55 billion including the company's debt
Tyson/HIllshire

After a two-week bidding war with Pilgrim's Pride, Tyson Foods is expected to complete the acquisition of Hillshire Brands.

After a two-week bidding war between Pilgrim’s Pride and Tyson Foods to acquire Hillshire Brands, Tyson Foods has come out on top with a winning bid of $7.7 billion. Including Hillshire’s debt, the deal is valued at $8.55 billion.

The bidding war first began on May 27, when poultry giant Pilgrim’s Pride made an unsolicited offer of $5.5 billion. The deal was challenged two days later with a $6.1 billion offer from Tyson.

The subsequent battle for Hillshire Brands has dramatically raised the company’s profile, which has an estimated value that, at $7.7 billion, is 71 percent higher than its market capitalization before the bidding began, according to The New York Times.

As of Monday, June 9, Pilgrim’s Pride has announced that it will withdraw its offer, leaving Tyson on top. As a condition of acquisition talks with both contenders, Hillshire is expected to terminate its own acquisition of Pinnacle Foods, established earlier in May. The $4.3 billion acquisition (estimated total worth $6.6 billion, including debt), is thought to weigh Hillshire down.

If the Hillshire board terminates the deal or votes against the transaction as expected, Pinnacle will receive a “breakup fee” of $163 million. 

Karen Lo is an associate editor at The Daily Meal. Follow her on Twitter @appleplexy.

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