Pilgrim’s Pride withdraws proposal to acquire Hillshire Brands

June 11, 2014

Pilgrim’s Pride Corp. has withdrawn its proposal to acquire The Hillshire Brands Co. after Tyson Foods Inc. increased its bid to $7.8 billion on June 8.

“As a disciplined acquirer, we determined that it was in the best interests of our shareholders not to increase our proposed price of $55.00 per share in cash,” said Bill Lovette, Pilgrim’s CEO.

But it’s not certain that Tyson’s deal will close. Tyson’s offer for Hillshire expires Dec. 12, and it is contingent on Hillshire dropping earlier-announced plans to acquire Pinnacle Foods Inc. in a $6.6 billion deal, including debt.

On June 9, Hillshire Brands confirmed that it received a unilateral binding offer from Tyson Foods to acquire all of the outstanding common shares of Hillshire Brands for $63.00 per share in cash. The Hillshire Brands board of directors has not approved the Tyson Foods offer, has not changed its recommendation regarding the Pinnacle merger, and is not making any recommendation with respect to the Tyson offer. Hillshire Brands does not have the right to terminate the merger agreement with Pinnacle Foods on the basis of the Tyson Foods offer or enter into an agreement with Tyson Foods prior to its termination. There can be no assurance that any transaction will result from the Tyson Foods offer.

Pilgrim’s Pride press release

Hillshire Brands press release