Tyson Foods Reportedly Clinches Deal For Hillshire Brands

(RTTNews) - Meat producer Tyson Foods Inc. (TSN) has won the battle for Hillshire Brands Co. (HSH), outbidding Pilgrim's Pride Corp. (PPC), a unit of Brazilian meat giant JBS SA, reports said.

Tyson will reportedly pay $63 per share in cash for Hillshire, valuing the company at $7.8 billion.

On May 27, Pilgrim's Pride proposed to acquire all of Hillshire's outstanding common stock for $45 per share in cash. Two days later, Tyson announced its proposal to acquire Hillshire for $50 per share in cash.

Hillshire Brands, the maker of Jimmy Dean sausages and Ball Park hot dogs, is party to a merger agreement with Pinnacle Foods following which Hillshire Brands agreed to acquire Pinnacle Foods for per share consideration of $18 in cash and 0.5 shares of Hillshire Brands common stock.

Both the Pilgrim's Pride and Tyson Foods proposals are conditioned on the termination of the Pinnacle Foods merger agreement.

On June 1, Pilgrim's Pride increased its offer to $55 per share in cash. On June 3, Hillshire said its board made the requisite determination under Hillshire Brands' merger agreement with Pinnacle to provide information to, and conduct separate discussions with Pilgrim's Pride and Tyson with regard to their recent unsolicited proposals.

Hillshire also said it does not have the right to terminate the Pinnacle merger agreement on the basis of either of these proposals or enter into an alternative acquisition agreement with either of these parties prior to termination.

Hillshire separated its tea and coffee segment in June 2012. It was previously known as Sara Lee Corp. The deal will help Tyson expand further into branded, value-added packaged foods.

TSN closed down 1.9 percent at $40.12 on Friday. HSH settled up 0.4 percent at $58.92 and PPC dropped 1.1 percent at $26.27.