Pilgrim's Pride Withdraws Offer For Hillshire Brands - Quick Facts

(RTTNews) - Pilgrim's Pride Corp. (PPC) announced Monday that it has withdrawn its offer to acquire Hillshire Brands Co. (HSH). Pilgrim's decision to withdraw follows today's announcement by Tyson Foods Inc. (TSN) that Tyson submitted a unilaterally binding offer to acquire all outstanding shares of The Hillshire Brands for a price of $63 per share in cash.

"As a disciplined acquirer, we determined that it was in the best interests of our shareholders not to increase our proposed price of $55.00 per share in cash," said Bill Lovette, Pilgrim's Chief Executive Officer.

Pilgrim's confirmed that it received fully-committed financing to support its proposal from a consortium of leading banks. As per the terms of the commitments, which were substantially over-subscribed, the anticipated interest rate was approximately 4.1 percent, with no maturities in the first seven years.

Earlier today, Tyson Foods announced it has submitted a unilaterally binding offer to acquire all outstanding shares of Hillshire Brands for a price of $63 per share in cash. The offer is subject to Hillshire Brands being released from its existing agreement to acquire Pinnacle Foods Inc. (PF) in accordance with the terms thereof. The all-cash transaction is valued at approximately $8.55 billion, including Hillshire Brands' outstanding net debt, and represents a multiple of 16.7x trailing 12 months adjusted EBITDA or 10.5x including $300 million in synergies.