Tyson Foods Inc. has signed a definitive deal to purchase Chicago-based 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.
Tyson had been vying with rival poultry producer Pilgrim’s Pride for Hillshire, which wrapped up its bidding process Sunday. Tyson ended up raising its offer to $63 per share. It had previously offered $50 per share, after which Pilgrim’s Pride raised its bid to $55 per share.
Takeover bids by Pilgrim’s Pride and Tyson Foods are being driven by the desirability of brand-name processed products like Jimmy Dean breakfast sandwiches.
Two days after poultry producer Pilgrim’s Pride made a $5.58 billion bid for the maker of Ball Park hot dogs and Jimmy Dean sausages, Tyson Foods Co. barged in with a $6.2 billion offer.
The poultry producer Pilgrim’s Pride is offering to acquire Chicago-based meat producer Hillshire Brands in a deal worth about $5.58 billion to create a “protein-focused company.”