Saturday, January 31, 2015
FAIRFIELD-SUISUN, CALIFORNIA
99 CENTS

Tyson wins bidding war to gobble up Hillshire

Tyson Hillshire

FILE - This file photo combo shows a package of frozen Tyson Chicken Nuggets, left, and a package of Hillshire Farm sausage, in Palo Alto, Calif. Meat producer Tyson Foods Inc. 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, the companies announced Monday, June 9, 2014. (AP Photo/Paul Sakuma, File)

By
June 10, 2014 |

NEW YORK — Tyson Foods Inc. has won a bidding war to gobble up Hillshire Brands, the maker of Jimmy Dean sausages and Ball Park hot dogs.

Tyson had been vying with rival poultry producer Pilgrim’s Pride to acquire Hillshire, which wrapped up its bidding process Sunday. Tyson’s final offer ended up at $63 per share, about two weeks after Pilgrim’s Pride made an initial bid of $45 per share.

Pilgrim’s Pride, which is owned by Brazilian meat giant JBS, said Monday that it was bowing out of the competition.

Still, the deal is not sealed yet. It is contingent on Hillshire not going through with its offer to acquire Pinnacle Foods Inc., which makes Birds Eye frozen vegetables and Wish-Bone salad dressings. Pinnacle could allow Hillshire to do its deal with Tyson, leaving Pinnacle with a $163 million breakup fee. Or it could force Hillshire shareholders to vote on whether they’d prefer a merger with Pinnacle.

A Pinnacle representative didn’t return a call for comment.

In a conference call with reporters, Tyson CEO Donnie Smith said he was confident the $63 offer would end up being worthwhile for Tyson shareholders, despite how high the price went.

“Great brands like Jimmy Dean and Ball Park just don’t become available very often,” Smith said.

Hillshire’s stock closed at $36.95 on May 9, the day before the company announced the Pinnacle deal. On Monday it closed up 5.3 percent at $62.06.

Tyson, like Pilgrim’s Pride, has been looking to boost its presence in brand-name, prepared foods like Jimmy Dean breakfast sandwiches. Those types of products are more profitable than fresh meat, such as chicken breasts, where there isn’t as much wiggle room to pad prices.

While Tyson and Pilgrim’s Pride already sell some brand-name products, their businesses have been more focused on supplying supermarkets and restaurant chains.

In particular, Tyson said it was drawn by Hillshire’s stable of breakfast foods, which would better position it in the fast-growing category.

Tyson also noted the potential for cost savings by combining supply chains, transportation and other operations with Hillshire. But Smith said it was too early to comment on how many jobs could be cut as a result of the deal.

Tyson’s offer will be in place until Dec. 12, the final termination date of the deal with Pinnacle.

Hillshire Brands noted it does not have the right to end the deal with Pinnacle on the basis of the Tyson offer, or enter into an agreement with Tyson before the deal is terminated.

“There can be no assurance that any transaction will result from the Tyson Foods offer,” Hillshire said in a statement.

Hillshire, based in Chicago, had been trying to diversify its own portfolio by moving into other areas of the supermarket with the $4.23 billion acquisition of Pinnacle. But some investors questioned the wisdom of that deal, given the outdated image of many Pinnacle brands and the differences in the two companies’ product portfolios.

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 shares fell 2.6 percent on Monday.

 

The Associated Press

The Associated Press

LEAVE A COMMENT

Discussion | No comments

The Daily Republic does not necessarily condone the comments here, nor does it review every post. Read our full policy

  • Recent Articles

  • Enter your email address to subscribe and receive notifications of new posts by email.

  • .

    Solano News

     
    SPCA begins caring for more than 100 rescued dogs

    By Kevin W. Green | From Page: A1, 4 Comments | Gallery

     
    Solano County confirms 1st local case of measles

    By Staff and wire reports | From Page: A1, 3 Comments

     
    Top workers, top students – and succulent crab

    By Susan Hiland | From Page: A2

    Armijo students savor catered Fuddruckers lunch

    By Susan Hiland And Susan Winlow | From Page: A3 | Gallery

     
    Partial Fairfield freeway road closure starts Monday

    By Ryan McCarthy | From Page: A3

     
    DUI patrols set for Super Bowl Sunday

    By Ryan McCarthy | From Page: A3

    Suisun City police log: Jan. 29, 2015

    By Susan Hiland | From Page: A9

     
    Fairfield police log: Jan. 29, 2015

    By Susan Hiland | From Page: A9

     
    .

    US / World

    Stanford University to get $50 million to produce vaccines

    By The Associated Press | From Page: A3

     
    Man charged in California family’s deaths will be own lawyer

    By The Associated Press | From Page: A3

    PG&E releases thousands of emails with state regulators

    By The Associated Press | From Page: A4

     
    Yosemite park fee hikes coming in March

    By The Associated Press | From Page: A4

    San Francisco coroner says human remains are from 1 man

    By The Associated Press | From Page: A4

     
    Judge expresses doubt about constitutionality of no-fly list

    By The Associated Press | From Page: A5

     
    French fracture laid bare as 8-year-old praises terrorists

    By The Associated Press | From Page: A5

     
    US mulls Middle East-North Africa category for 2020 Census

    By The Associated Press | From Page: A5

    Balloon crew makes history crossing Pacific Ocean

    By The Associated Press | From Page: A5

     
    Murder trial begins 35 years after 6-year-old vanished in NY

    By The Associated Press | From Page: A5

    Judge: Funeral home wrongly sold Lee Harvey Oswald’s casket

    By The Associated Press | From Page: A5

     
    Jordan awaits proof hostage is alive after swap deadline

    By The Associated Press | From Page: A5

     
    .

    Opinion

     
    GOP should plan for post-Obamacare world

    By Ramesh Ponnuru | From Page: A8, 10 Comments

    Editorial Cartoon: Jan. 31, 2015

    By Daily Republic Syndicated Content | From Page: A8

     
    Solano College news makes me sick

    By Letter to the Editor | From Page: A8, 2 Comments

    .

    Living

    Today in History: Jan. 31, 2015

    By The Associated Press | From Page: A2

     
    Community Calendar: Jan. 31, 2015

    By Susan Hiland | From Page: A2

    My recently widowed mother is already thinking about re-marrying

    By Kathy Mitchell and Marcy Sugar | From Page: B7

     
    Horoscopes: Jan. 31, 2015

    By Holiday Mathis | From Page: B7

    Five ways 3D-printed food will change the way we eat

    By The Washington Post | From Page: B10, 1 Comment

     
    .

    Entertainment

    TVGrid

    By Daily Republic Syndicated Content | From Page: B5

     
    List: 10 Super Bowl ads you’ll be talking about

    By The Associated Press | From Page: A7

    Rod McKuen, mega-selling poet and performer, dies at 81

    By The Associated Press | From Page: A7

     
    Miranda Lambert leads ACM Awards with 8 nominations

    By The Associated Press | From Page: A7

    Shakira gives birth to 2nd baby with Spanish football star

    By The Associated Press | From Page: A7

     
    .

    Sports

     
    Mustangs ride away from Indian’s home court with 66-60 victory

    By Marcus Lomtong | From Page: B1 | Gallery

     
    Hayward, Utah Jazz upset Golden State Warriors 110-100

    By The Associated Press | From Page: B1

    LeBron returns, Love, Irving team for 44, as Cavs top Kings

    By The Associated Press | From Page: B1

     
    Seau, Warner, Pace first-time Hall eligibles

    By The Associated Press | From Page: B2

    N.H. Speedway general manager faces lewdness charge

    By The Associated Press | From Page: B2

     
    Judge: Jury can watch Super Bowl unless Hernandez mentioned

    By The Associated Press | From Page: B2

    Blackhawks Hall of Famer Stan Mikita has brain disorder

    By The Associated Press | From Page: B2

     
    Ko takes lead at LPGA opener, closes in on golf history

    By The Associated Press | From Page: B2

    Djokovic beats Wawrinka to reach fifth Australian Open final

    By The Associated Press | From Page: B2

     
    Kings’ Cousins to replace Kobe Bryant in All-Star game

    By The Associated Press | From Page: B2

    Laird leads as Tiger shoots 82 and misses the cut

    By The Associated Press | From Page: B2

     
    Carroll says decision is Sherman’s if baby arrives early

    By The Associated Press | From Page: B3

    NFL’s Goodell seeks to look past ‘tough year,’ to future

    By The Associated Press | From Page: B3

     
    This date in sports history for Jan. 31, 2015

    By The Associated Press | From Page: B4

     
    .

    Business

    US consumer confidence at highest level in a decade

    By The Associated Press | From Page: A1

     
    Companies steering clear of Super Bowl name

    By The Associated Press | From Page: B5, 1 Comment

    .

    Obituaries

    Danica Gojkovich Ryder

    By Nancy Green | From Page: A4

     
    Anneliese Edith (Luckner) Fraser

    By Nancy Green | From Page: A4

    .

    Comics

    Blondie

    By Daily Republic Syndicated Content | From Page: B6

     
    Zits

    By Daily Republic Syndicated Content | From Page: B6

    Garfield

    By Daily Republic Syndicated Content | From Page: B6

     
    Peanuts

    By Daily Republic Syndicated Content | From Page: B6

    B.C.

    By Daily Republic Syndicated Content | From Page: B6

     
    Dilbert

    By Daily Republic Syndicated Content | From Page: B6

    Frank and Ernest

    By Daily Republic Syndicated Content | From Page: B6

     
    Baldo

    By Daily Republic Syndicated Content | From Page: B6

    Rose is Rose

    By Daily Republic Syndicated Content | From Page: B6

     
    Baby Blues

    By Daily Republic Syndicated Content | From Page: B6

    Sally Forth

    By Daily Republic Syndicated Content | From Page: B6

     
    Get Fuzzy

    By Daily Republic Syndicated Content | From Page: B6

    Wizard of Id

    By Daily Republic Syndicated Content | From Page: B6

     
    For Better or Worse

    By Daily Republic Syndicated Content | From Page: B6

    Beetle Bailey

    By Daily Republic Syndicated Content | From Page: B6

     
    Pickles

    By Daily Republic Syndicated Content | From Page: B6

    Bridge

    By Daily Republic Syndicated Content | From Page: B7

     
    Cryptoquote

    By Daily Republic Syndicated Content | From Page: B7

    Word Sleuth

    By Daily Republic Syndicated Content | From Page: B7

     
    Sudoku

    By Daily Republic Syndicated Content | From Page: B7

    Crossword

    By Daily Republic Syndicated Content | From Page: B7

     
    .

    Home Seller 1/31/2015

    Quirky add-ons a common feature of celebrity homes

    By The Associated Press | From Page: HSR2

    Real estate transactions for Jan. 31, 2015

    By Daily Republic | From Page: HSR3

    5 ways to make a kitchen more germ-free

    By The Associated Press | From Page: HSR3

    Average US rate on 30-year mortgage rises to 3.66 percent

    By The Associated Press | From Page: HSR3