CHICAGO
The battle for Hillshire Brands continues. Pilgrim’s Pride has just raised its offer for the company to $55 a share from $45, now valuing it at a whopping $6.7 billion. Last week, Tyson, the second-largest U.S. pork producer bid $50 a share for Hillshire, valuing the company at about $6.1 billion. Brazil’s JBS SA is also in the race for the company, but Hillshire has not made any recommendation regarding any of the competing proposals, according to Crain’s Chicago Business.
Pilgrim’s Pride says that it anticipates cost savings from the proposed acquisition to exceed $300 million annually, creating considerable value for the shareholders of both companies. If the deal goes through, both companies would share a diversified portfolio of various household name brands including Pierce, Wing Dings, Jimmy Dean, Hillshire Farm, Ball Park, and State Fair, with plans to extend the company into other categories.
Click here to read: Pilgrim’s Pride Makes 6 Billion Dollar Bid for Hillshire Brands
“It has long been our desire to acquire the company,” said Pilgrim’s CEO William Lovette and JBS CEO Wesley Batista in a letter sent to Hillshire on May 27, according to Crain’s Chicago Business.
Earlier in May, Hillshire made a move on its own by announcing plans to acquire Pinnacle Foods for $6.6 billion. Both Pilgrim’s Pride and Tyson requested that Hillshire terminate the Pinnacle acquisition proposal, but Hillshire has not yet commented whether it will or will not scrap the deal.
Click here to read: Hillshire Brands Acquires Pinnacle Foods for 6 Billion Dollars
Although Pilgrim’s Pride has currently regained its lead, which of these three meat packers will ultimately acquire Hillshire Brands?
Stay tuned to DeliMarket TV as we continue following this developing story.
