Tags: Tyson Foods | AdvancePierre | food | mergers

Tyson Foods to Buy Sandwich-Maker AdvancePierre for $3.2 Billion

Tyson Foods to Buy Sandwich-Maker AdvancePierre for $3.2 Billion

Tuesday, 25 April 2017 08:18 AM

Tyson Foods Inc, the No. 1 U.S. meat processor, said on Tuesday it would buy packaged sandwich supplier AdvancePierre Foods Holdings Inc for about $3.2 billion in cash, to expand its fast-growing portfolio of prepared foods.

Tyson's offer of $40.25 per share is a 9.8 percent premium to AdvancePierre's Monday close.

The deal, which has an enterprise value of about $4.2 billion, includes $1.1 billion of AdvancePierre debt.

AdvancePierre sells a variety of meat sandwiches and snacks through brands such as Landshire and Barber Foods.

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.

The three brands — Sara Lee, the Kettle business and Van's — produce items such as frozen desserts, waffles, breakfast bars and soups. Rothschild is acting as Tyson's financial adviser for the sale.

Morgan Stanley & Co LLC is advising Tyson, while Davis Polk & Wardwell LLP is providing legal counsel for the AdvancePierre deal.

Credit Suisse Securities (USA) LLC and Moelis & Co LLC are serving as financial advisers to AdvancePierre, while Skadden, Arps, Slate, Meagher & Flom LLP is providing legal counsel.

AdvancePierre shares rose 9.1 percent to $40.00 in premarket trading. Tyson Foods shares were slightly higher.

© 2019 Thomson/Reuters. All rights reserved.

   
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Tyson Foods Inc, the No. 1 U.S. meat processor, said on Tuesday it would buy packaged sandwich supplier AdvancePierre Foods Holdings Inc for about $3.2 billion in cash, to expand its fast-growing portfolio of prepared foods.
Tyson Foods, AdvancePierre, food, mergers
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2017-18-25
Tuesday, 25 April 2017 08:18 AM
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