Meat producer Tyson Foods Inc. of Arkansas has won a bidding war for Hillshire Brands, the maker of Jimmy Dean sausages and Ball Park hot dogs, with a $63 per share offer.
Both Tyson and Pilgrim's Pride had been bidding of Hillshire Brands. Tyson had previously offered $50 per share for the company. Pilgrim's Pride then raised its bid to $55 per share.
Pilgrim's Pride says it is withdrawing its offer. The offer from Tyson is worth $7.75 billion based on Hillshire's 123 million shares outstanding. Tyson values the deal at $8.55 billion, including debt.
Tyson said the combination will help it expand its prepared food business.
"The Hillshire Brands acquisition would represent a defining moment for Tyson Foods," Donnie Smith, Tyson's president and CEO, said in a news release. "Our strategy has been to grow our prepared foods business, and it has been our aspiration to be a leader in retail prepared foods just as we are in chicken. Now we will have those iconic No. 1 and No. 2 brands in numerous categories."
