SPRINGDALE, AR -- Tyson Foods Inc. has agreed to buy Hillshire Brands Co. for $7.7 billion after Hillshire terminated its merger pact with Pilgrim's Pride.
The agreement was reached days after Hillshire terminated its own $4.3 billion deal to buy Pinnacle Food Inc., announced on June 30. Springdale, AR-based Tyson, the largest U.S. meat producer, will also pay the $163 million breakup fee owed to Pinnacle for the termination of its agreement with Hillshire.
Hillshire's Jimmy Dean sausages, Ball Park hot dogs and State Fair corn dogs will expand Tyson's portfolio of prepared, processed meats.
"By investing in Hillshire Brands and its collection of leading brands, we have a unique opportunity to transform an important segment of our business, and position Tyson Foods to meet American consumers' growing demand for protein at breakfast and throughout the day," said Tyson chief executive Donnie Smith.
Tyson made its initial, unsolicited offer to acquire Hillshire on May 29, following an unsolicited bid from Pilgrim's Pride Corp. two days earlier. | READ MORE
The companies said they expect the deal to close by Sept. 27.