- Tyson Foods Inc. (TSN) said early Tuesday that it has agreed to acquire AdvancePierre Foods Holdings Inc. (APFH) in a deal valued at $4.2 billion, including $3.2 billion in equity value and $1.1 billion in assumption of AdvancePierre debt. Tyson's offer is $40.25 per share for AdvancePierre's outstanding shares, above the $36.67 value of AdvancePierre shares as of Monday's close.
- The deal is expected to close in the third quarter. Tyson shares have surged 4.4% over the last three months, and AdvancePierre shares have surged 33.2%, compared with a 3.3% rise in the S&P 500.
Demand for meat-based snacks has been growing as Americans shun candy and overly processed foods. This has led to a spurt in buyouts of meat snack makers in recent years, including chocolate maker Hershey's (HSY) acquisition of Krave beef jerky and Conagra Brands Inc's (CAG) deal to buy Duke's meat snacks.
AdvancePierre, whose shares hit a record high of $40.29, sells a variety of meat sandwiches and snacks through its Landshire and Barber Foods brands.
Tyson's prepared food brands such as Jimmy Dean, Hillshire Farm and Ball Park primarily make products such as pepperoni, bacon, hot dogs, pizza crusts and toppings.
Funds affiliated with investment manager Oaktree Capital Management LP, which own about 42 percent of AdvancePierre, have agreed to support the deal.
Tyson had said on Monday it was exploring a sale of its three non-protein brands, including Sara Lee Frozen Bakery, to sharpen its focus on its core businesses.
