Tyson Foods completes AdvancePierre acquisition
US-based Tyson Foods has completed the acquisition of AdvancePierre Foods Holdings for approximately $4.2bn.
In April, Tyson Foods signed an agreement to acquire AdvancePierre to expand its portfolio of protein packed brands.
Tyson Foods completed the tender offer to purchase AdvancePierre’s outstanding shares of common stock for $40.25 a share in cash and without interest.
With the completion of this transaction, AdvancePierre has now become a wholly owned subsidiary of Tyson Foods, and its shares will stop trading on the New York Stock Exchange (NYSE).
Ohio-based AdvancePierre produces ready-to-eat sandwiches and snacks for foodservice, retail and convenience store providers across the US.
AdvancePierre has nearly 4,500 employees and generated revenues of $1.6bn in the last financial year.
Tyson Foods president and CEO Tom Hayes said: “AdvancePierre is a natural, strategic fit that will extend our capabilities in new and growing food categories.
“We expect the acquisition to immediately contribute to earnings and are also confident it will result in cost synergy benefits of $200m within three years.”
Based in Springdale, Arkansas, Tyson Foods manufactures prepared foods, including bacon, breakfast sausage, turkey, lunchmeat, hot dogs, pizza crusts and toppings, as well as tortillas.
The company owns brands such as Tyson, Jimmy Dean, Hillshire Farm, and Sara Lee, as well as supplies to retail and foodservice customers across the US and around 115 countries.