The Arkansas-based food producer Tyson Foods (TSN
) made an offer to acquire Hillshire Brands Co. (HSH), the company known for its Jimmy Dean and Hillshire sausage brands, on Thursday.
Tyson Foods offered to buy Hillshire in a deal valued at $6.8 billion, a bid that tops that of Pilgrim’s Pride, a chicken producer, which had offered $6.4 billion for the same acquisition earlier this week. Tyson’s bid showcases the company’s efforts in expanding its supermarket food offerings. While both Pilgrim and Tyson’s bids are all-cash and assume Hillshire’s debt, Tyson’s is undeniably more aggressive; the company’s bid is nearly 18% higher than that of Pilgrim’s, valuing Hillshire at about $50 a share compared to the earlier offer, which equates to about $45 per share.
News of the Tyson bid sent shares of Hillshire soaring nearly 18% on the day, or up $7.94, settling at $52.76 a share as the closing bell rang. Shares of Tyson Foods also rallied higher on Thursday, gaining $2.50, or 6.13%. From a year-to-date perspective, Hillshire and Tyson shares are up 57% and 29%, respectively.
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