Saturday, November 22, 2014
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

.

US / World

House intel panel debunks many Benghazi theories

By The Associated Press | From Page: A1, 8 Comments

 
A look at how FDA-approved robotic leg braces work

By The Associated Press | From Page: A1

Marine with robotic leg braces gets Bronze Star

By The Associated Press | From Page: A1, 1 Comment | Gallery

 
Oregon festival’s giant nutcracker: 41 feet

By The Associated Press | From Page: A2

San Francisco window washer falls onto moving car

By The Associated Press | From Page: A3 | Gallery

 
Zookeepers had safety concerns before gorilla died

By The Associated Press | From Page: A4

California storms bring scattered rain, mudslides

By The Associated Press | From Page: A4 | Gallery

 
Judge declares wrongly convicted woman innocent

By The Associated Press | From Page: A4 | Gallery

$139M deal reached in school molestation case

By The Associated Press | From Page: A4

 
Agency rejects solar project in Silurian Valley

By The Associated Press | From Page: A5

Senate leader lays off dozens of office employees

By The Associated Press | From Page: A5, 1 Comment

 
UC expands legal services for immigrant students

By The Associated Press | From Page: A5

Man pleads not guilty to emailing nudies of ex

By The Associated Press | From Page: A5

 
Stymied? Republicans seek immigration response

By The Associated Press | From Page: A5, 3 Comments

LA animal shelter slashes prices on 100 pets

By The Associated Press | From Page: A5 | Gallery

 
Iran nuke talks stalled, despite Kerry efforts

By The Associated Press | From Page: A10, 1 Comment

Biden urges Russia to uphold east Ukraine truce

By The Associated Press | From Page: A10

 
Police: 3-year-old set fire that killed his family

By The Associated Press | From Page: A10

93-year-old woman marks 75 years with same company

By The Associated Press | From Page: A10

 
UK police spied on reporters for years, docs show

By The Associated Press | From Page: A10

Agency: Schools helped Lanza’s mom ‘appease’ him

By The Associated Press | From Page: A10

 
Bandits in Guinea steal suspected Ebola blood

By The Associated Press | From Page: A10

With snow still piled high, Buffalo faces flooding

By The Associated Press | From Page: A10

 
.

Opinion

 
Editorial Cartoons: Nov. 22, 2014

By Daily Republic Syndicated Content | From Page: A8

 
Batson column falls short of truth

By Letter to the Editor | From Page: A8, 45 Comments

.

Living

Community Calendar: Nov. 22, 2014

By Susan Hiland | From Page: A2

 
Today in History: Nov. 22, 2014

By The Associated Press | From Page: A2

My sister kicked Mom out of her house and won’t let her have the car

By Kathy Mitchell and Marcy Sugar | From Page: A7

 
Horoscopes: Nov. 22, 2014

By Holiday Mathis | From Page: A7

Blanket drive for homeless gets help from Colts player

By The Associated Press | From Page: B8

 
.

Entertainment

Bill Cosby show set for Vegas casino canceled

By The Associated Press | From Page: B9

 
Matt Czuchry says ‘Good Wife’ arc is at right time

By The Associated Press | From Page: B9

‘Queen Latifah Show’ to end after its 2nd season

By The Associated Press | From Page: B9

 
TVGrid

By Daily Republic Syndicated Content | From Page: B9

.

Sports

Vacaville downs Del Oro to advance to section semis

By Nick DeCicco | From Page: B1

 
Sparano savors 1st win with Raiders

By The Associated Press | From Page: B1

 
Ibanez, Cash, Wakamatsu finalists to manage Rays

By The Associated Press | From Page: B2

 
Federal judge denies sports betting in New Jersey

By The Associated Press | From Page: B2

JC women’s basketball: Solano advances to tourney title game

By Daily Republic staff | From Page: B2

 
Ciganda, Granada tied for lead at LPGA finale

By The Associated Press | From Page: B2

Sharks trade Demers to Stars for Dillon

By The Associated Press | From Page: B2

 
NFL will hear Adrian Peterson’s appeal Dec. 2

By The Associated Press | From Page: B2

49ers’ Dorsey is out of Sunday’s game against Redskins

By The Associated Press | From Page: B2

 
France levels tie against Switzerland in Davis Cup

By The Associated Press | From Page: B2

 
This date in sports history for Saturday, Nov. 22, 2014

By The Associated Press | From Page: B3

.

Business

Toyota recalls nearly 423K Lexuses for fuel leaks

By The Associated Press | From Page: B4

 
Ford’s new F-150 to get 26 mpg, tops among pickups

By The Associated Press | From Page: B4, 1 Comment | Gallery

CEOs in 10 big mergers to get $430M: Equilar study

By The Associated Press | From Page: B4

 
California unemployment unchanged at 7.3 percent

By The Associated Press | From Page: B4

White House: Immigration steps would boost wages

By The Associated Press | From Page: B4

 
.

Obituaries

.

Comics

Wizard of Id

By Daily Republic Syndicated Content | From Page: A6

 
For Better or Worse

By Daily Republic Syndicated Content | From Page: A6

B.C.

By Daily Republic Syndicated Content | From Page: A6

 
Baldo

By Daily Republic Syndicated Content | From Page: A6

Rose is Rose

By Daily Republic Syndicated Content | From Page: A6

 
Beetle Bailey

By Daily Republic Syndicated Content | From Page: A6

Blondie

By Daily Republic Syndicated Content | From Page: A6

 
Sally Forth

By Daily Republic Syndicated Content | From Page: A6

Zits

By Daily Republic Syndicated Content | From Page: A6

 
Pickles

By Daily Republic Syndicated Content | From Page: A6

Frank and Ernest

By Daily Republic Syndicated Content | From Page: A6

 
Peanuts

By Daily Republic Syndicated Content | From Page: A6

Garfield

By Daily Republic Syndicated Content | From Page: A6

 
Get Fuzzy

By Daily Republic Syndicated Content | From Page: A6

Dilbert

By Daily Republic Syndicated Content | From Page: A6

 
Baby Blues

By Daily Republic Syndicated Content | From Page: A6

Bridge

By Daily Republic Syndicated Content | From Page: A7

 
Sudoku

By Daily Republic Syndicated Content | From Page: A7

Cryptoquote

By Daily Republic Syndicated Content | From Page: A7

 
Crossword

By Daily Republic Syndicated Content | From Page: A7

Word Sleuth

By Daily Republic Syndicated Content | From Page: A7

 
.

Home Seller 11/22/14

Ask a Designer: from clutter to decor

By The Associated Press | From Page: HSR2

Real estate transactions for Nov. 22, 2014

By Maureen Fissolo | From Page: HSR3

US 30-year mortgage rates drop to 3.99 percent

By The Associated Press | From Page: HSR3