Tyson Foods, Inc. (TSN - Analyst Report), after winning the bid for packaged meat producer, The Hillshire Brands Company on Jul 2, is working closely with the Antitrust Division of the Department of Justice to close the deal on the expected date, i.e. Sep 27.
Recently, Tyson extended the offering period of its previously announced tender offer to purchase all of the outstanding shares of Hillshire Brands for $63.00 per share in cash. The offer was previously scheduled to expire on Aug 19 but now has been extended to Aug 26, 2014, to allow additional time for the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
The tender offer was initially made on Jul 2, when Tyson Foods had signed a definitive acquisition deal with Hillshire Brands, after a long fought bidding war with poultry producer Pilgrim’s Pride Corp. (PPC - Analyst Report). Per the deal, Tyson Foods will pay $63 per share in cash for all the outstanding shares of Hillshire, valuing the company at approximately $8.55 billion, including debt.
On the same day, Hillshire’s board accepted the notice of termination of the deal from frozen foods maker Pinnacle Foods, Inc. (PF - Analyst Report), which was the prime condition for the Tyson deal to materialize.
Chicago-based Hillshire Brands had proposed to buy Pinnacle for about $6.6 billion on May 12, including debt, in order to diversify its portfolio. (Read: Hillshire to Buy Pinnacle Foods for $6.6B). However, two weeks later Tyson and Pilgrim’s Pride engaged in a bidding war to acquire Hillshire. It came to an end when Tyson finally clinched the deal.
Both Hillshire and Tyson have a Zacks Rank #3 (Hold).