Tyson completes tender offer
August 28, 2014
by Meat&Poultry Staff
SPRINGDALE, Ark. – Tyson Foods Inc. expects to close on its acquisition of The Hillshire Brands Company following a successful tender offer.
Tyson has announced the successful completion of its stock buy-back plan, which including purchasing all outstanding shares of Hillshire common stock for $63 per share in cash, without interest. Computershare Trust Company, depositary for the offer, said approximately 70 percent of Hillshire's outstanding shares were tendered as of Aug. 27, representing 86,987,201 shares of common stock. All remaining shares will be converted to into the right to receive $63 per share in cash, without interest.
Tyson must divest itself of its Heinhold Hog Markets business within 90 days of Aug. 27 as part of a proposed settlement with US Department of Justice's Antitrust division. Heinold Hog Markets buys sows from farmers, sorts the sows at buying stations and resells and trucks the sows to sausage processors. Hillshire buys sows directly from farmers.
Chicago-based Hillshire Brands will become a wholly owned subsidiary of Tyson Foods and Hillshire shares will no longer be traded on the New York Stock Exchange and the Chicago Stock Exchange.