Tyson Foods To Take Over AdvancePierre Foods For $3.2 Billion
SPRINGDALE (KFSM) — Tyson Foods announced on Tuesday (April 25) they would be taking over AdvancePierre Foods Holdings for about $3.2 billion.
The boards of directors for both companies approved the merger, which also includes Tyson taking on about $1.1 billion worth of AdvancePierre debt.
Ohio-based AdvancePierre produces ready-to-eat sandwiches, sandwich components, entrees and snacks, according to a news release. The company, which has about 4,500 employees, had about $1.6 billion in revenue for 2016.
Tyson’s acquisition is in line with its goal to expand its prepared foods portfolio.
“We are very pleased to announce this combination with AdvancePierre,” said Tom Hayes, Tyson president and CEO. “The AdvancePierre leadership team has created significant value through the implementation of a new business management model, focus on quality and service and attention to the growth opportunities in convenience foods. The addition of AdvancePierre aligns with our strategic intent to sustainably feed the world with the fastest growing portfolio of protein packed brands…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.”
Company executives also said the merger will benefit both Tyson and AdvancePierre shareholders.
“By combining our complementary, market-leading portfolios, both companies will realize greater opportunities,” said Christopher Silva, AdvancePierre president and CEO. “This combination will allow AdvancePierre to accelerate its growth and broaden its distribution network by leveraging Tyson’s existing distribution infrastructure and go-to-market capabilities.”
On Monday, Tyson revealed that it was looking at selling three of its non-protein brands: Sara Lee® Frozen Bakery, Kettle and Van’s.