Tyson Foods to Acquire Meat Firm AdvancePierre Foods

Tyson Foods entered into a definitive merger agreement with Cincinnati, OH-based producer of pre-portioned, ready-to-cook and fully cooked meat products AdvancePierre Foods Holdings Inc. that will strengthen the company’s position in the prepared foods segment, Tyson announced in a press release Tuesday.

“This strategically compelling transaction provides a unique opportunity to create value by joining highly complementary market-leading portfolios,” the company explained. Under the arrangement, a Tyson subsidiary will purchase all of AdvancePierre’s outstanding common shares for $40.25 in cash.

“The AdvancePierre leadership team has created significant value through implementation of a new business management model, focus on quality, and service and attention to the growth opportunities in convenience foods. The addition of AdvancePierre aligns with our strategic intent to sustainably feed the world with the fastest growing portfolio of protein-packed brands,” Tyson’s president and chief executive officer, Tom Hayes, said in a statement.

According to Tyson, the total value of the transaction was set at $4.2 billion, with $3.2 billion in equity value and $1.1 billion to assume AdvancePierre’s debt.

“We couldn’t be more delighted to join Tyson. By combining our complimentary, market-leading portfolios, both companies will realize greater opportunities,” said Christopher D. Silva, president and chief executive officer of AdvancePierre in Tyson’s release. “This combination will allow AdvancePierre to accelerate its growth and broaden its distribution network by leveraging Tyson’s existing distribution infrastructure and go-to-market capabilities.”

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