Pilgrim's Pride Raises Hillshire Brands Bid To $55/Shr - Quick Facts

(RTTNews) - Chicken products maker Pilgrim's Pride Corp. (PPC) confirmed the submission of a revised proposal to acquire Hillshire Brands Co. (HSH) for $55.00 per share cash in a $7.7 billion worth transaction. This represents an increase of $1.3 billion versus Pilgrim's initial proposal, and a 49% premium over Hillshire's share price one day prior to the announcement of its transaction with Pinnacle Foods Inc. (PF).

Pilgrim's expects annual run-rate cost synergies to exceed $300 million to come from operational and value-chain efficiencies and, in addition, significant growth opportunities in higher margin branded products, both in North America and wordwide. Pilgrim's anticipates that the increased cash flow from the combined company and the realization of synergies would allow it to rapidly pay down the initial acquisition debt. Pilgrim's projects the combination to be immediately accretive to earnings owing to these significant synergies and the availability of attractive financing terms.

Lazard is acting as financial advisor to Pilgrim's and Cravath, Swaine & Moore LLP is acting as its legal counsel.