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Tyson Moves Forward With Acquisition Of Hillshire Brands

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Tyson Food is moving forward with a $7.75 billion deal to acquire Hillshire Bradnds, whose brands include Hillshire Farm deli meats, Jimmy Dean sausages, and Ball Park hot dogs, among others.  (Photo by Joe Raedle/Getty Images)

Tyson Food is moving forward with a $7.75 billion deal to acquire Hillshire Bradnds, whose brands include Hillshire Farm deli meats, Jimmy Dean sausages, and Ball Park hot dogs, among others. (Photo by Joe Raedle/Getty Images)

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SPRINGDALE, Ark. (AP) — Tyson Foods Inc. has signed a definitive deal to purchase Hillshire Brands Co. for $7.75 billion, two days after the maker of Jimmy Dean sausages and Ball Park hot dogs was let out of its agreement to buy Pinnacle Foods.

Chicago-based Hillshire agreed to buy Pinnacle Foods Inc. for $4.23 billion in May. But then Tyson and Pilgrim’s Pride Corp. got into a bidding war for Hillshire, with Hillshire accepting Tyson’s $63 per share offer last month. The deal with Tyson — which is valued by the companies at about $8.55 billion, including debt — was contingent on Hillshire walking away from its deal with Pinnacle.

On Monday, Parsippany, New Jersey- based Pinnacle terminated its sale to Hillshire. Pinnacle makes products such as Birds Eye frozen vegetables, Duncan Hines cake mixes and Hungry-Man frozen dinners.

Springdale, Arkansas-based Tyson said Wednesday that it will pay the $163 million termination fee to Pinnacle on behalf of Hillshire.

Tyson’s acquisition of Hillshire is expected to close by Sept. 27, the last day of Tyson’s fiscal year.

(TM and © Copyright 2014 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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