SPRINGDALE, Ark. and CINCINNATI -- Tyson Foods Inc. and AdvancePierre Foods Holdings Inc. have entered into a definitive merger agreement. Tyson will launch a tender offer to acquire all of AdvancePierre’s outstanding common shares for $40.25 per share in cash.
The total enterprise value of the transaction, which has been approved by the boards of both companies, is approximately $4.2 billion, including $3.2 billion in equity value and $1.1 billion in assumption of AdvancePierre debt.
AdvancePierre is a leading national producer of ready-to-eat lunch and dinner sandwiches, sandwich components and snacks, with product categories that are complementary to Tyson’s current offerings. Its portfolio fits well with Tyson’s strategy to expand its fresh prepared-foods offering for both out-of-home and in-home eating occasions.
The collective portfolio of sandwiches, sandwich components, entrees and snacks will extend Tyson’s core strength into the convenience-store and retail perimeter with solutions that span all dayparts.
AdvancePierre, Cincinnati, is a national producer and distributor of value-added, convenient, ready-to-eat sandwiches, sandwich components and other entrees and snacks to a wide variety of distribution outlets including foodservice, retail and c-store providers. With revenues of $1.6 billion, the company offers a broad line of products across all dayparts, including ready-to-eat sandwiches, such as breakfast sandwiches, peanut butter and jelly sandwiches and hamburgers; sandwich components, such as fully cooked hamburger and chicken patties and Philly steaks; and other entrees and snacks, such as country-fried steak, stuffed entrees, chicken tenders and cinnamon dough bites.
Springdale, Ark.-based Tyson is one of the world's largest food companies with brands such as Tyson, Jimmy Dean, Hillshire Farm, Sara Lee, Ball Park, Wright, Aidells and State Fair. It is a market leader in chicken, beef and pork as well as prepared foods, including bacon, breakfast sausage, turkey, lunch meat, hot dogs, pizza crusts and toppings, tortillas and desserts. The company supplies retail and foodservice customers throughout the United States and approximately 115 countries.
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