Springdale, AR, United States (4E) – Tyson Foods said Monday that it made an offer to Hillshire Brands Company to acquire all its outstanding shares for $63 per share in cash.
The all-cash transaction values the company at around $8.5bn, which includes Hillshire Brands’ outstanding net debt, according to the U.S. meat giant in a statement.
Last Thursday, Tyson Foods made an offer of $50 per share, or $6.8bn, in a plan to acquire the company that makes Jimmy Dean sausage and Ball Park hot dogs.
The new offer, which follows Hillshire Brands’ bidding process that concluded on Sunday, is subject to Hillshire Brands being released from its existing agreement to takeover Pinnacle Foods, according to Tyson Foods.
Following Tyson’s increased offer, Pilgrim’s Pride decided to pull out of the bidding for Hillshire.
Tyson said its acquisition of Hillshire will bring the company cost savings that will allow it to boost earnings per share in the first full year of the merger, despite the higher price tag for the deal.