Tyson Foods Acquires AdvancePierre Foods for $4.2B

SPRINGDALE, Ark. -- An Arkansas-based business that is one of the world's largest food companies is buying a leading national producer of ready-to-eat lunch and dinner sandwiches, sandwich components and snacks.

The acquisition by Tyson Foods, Inc. of AdvancePierre Foods Holdings, Inc. is valued at about $4.2 billion (including $3.2 billion in equity value and $1.1 billion in assumption of AdvancePierre debt).

A Tuesday news release announced the definitive merger agreement pursuant to which a subsidiary of Tyson will launch a tender offer to acquire all of AdvancePierre’s outstanding common shares for $40.25 per share in cash.

“This strategically compelling transaction provides a unique opportunity to create value by joining highly complementary market-leading portfolios,” the release stated, adding that “this acquisition will further Tyson’s strategic intent to sustainably feed the world with its fast-growing portfolio of protein-packed brands.”

Tyson officials say the transaction is expected to result in cost synergies of about $200 million, to be fully realized within three years. Tyson also sees the opportunity to utilize high-quality raw materials from the fresh meats division to drive growth and efficiency. 

The transaction is expected to close in the third quarter of Tyson’s fiscal 2017.

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