Tyson to Buy AdvancePierre, Aims to Part with Sara Lee

Tyson Foods, Inc. and AdvancePierre Foods Holdings, Inc. have entered into a definitive merger agreement pursuant to which a subsidiary of Springdale, Arkansas, USA-headquartered Tyson will launch a tender offer to acquire all of Cincinnati, Ohio-based AdvancePierre’s outstanding common stock for $40.25 per share in cash.

AdvancePierre logoAdvancePierre is a producer of ready-to-eat lunch and dinner sandwiches, sandwich components and snacks, with product categories that are complementary to Tyson’s current portfolio. Among its frozen offerings are fully cooked Pierre Signature Grilled Chicken Sandwiches and Angus Cheeseburgers, Chicken Kiev and Philadelphia-style steak slices. Distribution to foodservice, retail, institutional and convenience sectors is national in scope.

angus cheeseburger

The total enterprise value of the transaction, which has been approved by the boards of directors of both companies, is approximately $4.2 billion, including $3.2 billion in equity value and $1.1 billion in assumption of AdvancePierre debt. The offer price represents a 31.8 percent premium to AdvancePierre’s closing price on April 5, 2017, the most recent unaffected trading day, and a 41.6 percent premium to the company’s 60-day volume-weighted average trading price ending on April 5, 2017.

grilled chicken sandwichThe deal comes as Tyson Foods Inc. is exploring the sale of some of its "non-protein" operations, including the Sara Lee frozen bakery business, its Kettle frozen food assets, and Van's frozen waffle and breakfast cereal business.

"Through our ongoing strategic planning process, we're continuously looking at ways to maximize the effectiveness and growth potential of our protein-based portfolio of products," commented Tom Hayes, president and CEO of Tyson Foods.

AdvancePierre’s product portfolio fits well with Tyson’s strategy to expand its prepared foods offering for both out-of-home and in-home eating occasions, said Hayes.

The collective portfolio of sandwiches, sandwich components, entrees and snacks will extend Tyson’s core strength into the fast-growing convenience and retail perimeter with products that span all-day parts. AdvancePierre’s Barber Foods brand of value-added chicken products has a strong heritage in both retail and foodservice channels.


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