Arkansas-based Tyson Foods Inc. announced Tuesday a $4.2 billion deal to acquire the outstanding shares of a national sandwich and snack company, AdvancePierre Foods Holdings Inc.
A subsidiary of Tyson Foods, which is based in Springdale, will offer to pay $40.25 per share in cash for AdvancePierre Foods' outstanding common shares, according to a news release.
The total value of the deal is estimated by the two companies' board of directors to be $4.2 billion, the release said. The deal includes $3.2 billion in equity value and $1.1 billion in assumption of AdvancePierre Foods debt, officials said.
Cincinnati-based AdvancePierre Foods' array of products including sandwiches, sandwich components, entrees and snacks will "extend Tyson’s core strength into the fast-growing convenience and retail perimeter with solutions that span all-day parts," the release said.
President and CEOs of both companies expressed their delight with the merger.
"We believe that AdvancePierre and Tyson are a natural strategic fit and together will accelerate growth for customers by delivering on-trend, high quality products consumers love. We look forward to welcoming AdvancePierre’s dedicated team members to the Tyson family,” Tyson President and CEO Tom Hayes said in the release.
AdvancePierre President and CEO Christopher D. Sliva said his firm "couldn’t be more delighted to join Tyson, adding the combination will "provide long-term benefits for our team members and customers."
Read Wednesday's Arkansas Democrat-Gazette for full details.