Tyson Foods (TSN) and Hillshire Brands (HSH) said they reached a agreement under which Tyson Foods will acquire all outstanding shares of Hillshire Brands for $63 per share, making official the deal that resulted from a bidding war last month.
TSN was up 1% at $38.24 recently, in a 52-week range of $25.93 to $44.24. HSH edged up 0.2% to $62.72 after hitting a fresh all-time high at $62.75.
The all-cash transaction is valued at approximately $8.55 billion, including Hillshire Brands’ outstanding net debt.
The transaction has been unanimously approved by the boards of directors of both companies and is expected to close by Sept 27, which is the last day of Tyson Foods’ fiscal year.
Hillshire Brands said its board has accepted a notice of termination received from Pinnacle Foods (PF) ending their prior deal. Tyson Foods will be making, on behalf of Hillshire Brands, a payment of the $163 million termination fee associated with the termination of that deal.
PF slipped 0.8% to $31.82, in a 52-week range of $23.90 to $35.67.