Tyson Foods completes AdvancePierre acquisition
AdvancePierre Foods becomes a wholly-owned subsidiary of Tyson Foods
The company completed a tender offer to buy all the outstanding shares of common stock of AdvancePierre for $40.25 per share in cash, without interest. The offer expired at midnight at the end of June 6, and was followed by a merger of a wholly-owned subsidiary of Tyson Foods into AdvancePierre. The total value of the transaction, which was earlier announced in April, was approximately $4.2 billion.
AdvancePierre is a leading national producer of ready-to-eat lunch and dinner sandwiches, sandwich components and snacks. Its customers include foodservice, retail and convenience store providers. AdvancePierre, which employs approximately 4,500 people, generated revenues of $1.6 billion in 2016.
“AdvancePierre is a natural, strategic fit that will extend our capabilities in new and growing food categories.” said Tyson Foods President and CEO Tom Hayes. “We expect the acquisition to immediately contribute to earnings and are also confident it will result in cost synergy benefits of $200 million within three years.”
Hayes added that integration teams have been formed and that the company will remain focused on maintaining high quality customer service during the transition.
As a subsidiary of Tyson Foods, AdvancePierre’s shares will cease to be traded on the New York Stock Exchange.