Tyson Foods Wins Bid to Acquire Hillshire Brands

Tyson Foods, Inc., Springdale, Ark., submitted a unilaterally binding offer to acquire all outstanding shares of The Hillshire Brands Co., Chicago, for $63 per share in cash. The offer is subject to Hillshire Brands being released from its existing agreement to acquire Pinnacle Foods Inc., Parsippany, N.J.

This move follows a bidding process conducted by Hillshire Brands that concluded June 8. The all-cash transaction is valued at approximately $8.55 billion, including Hillshire Brands’ outstanding net debt, and represents a multiple of 16.7x trailing 12 months adjusted EBITDA or 10.5x including $300 million in synergies.