Pilgrim’s Pride offers to buy Hillshire Brands for $5.58 billion

NEW YORK, N.Y. – Pilgrim’s Pride is offering to acquire meat producer Hillshire Brands in a deal worth about $5.58 billion.

The poultry producer is offering $45 per share for Hillshire, which makes Hillshire Farm lunch meats and Jimmy Dean sausages. Hillshire has 124 million shares outstanding, according to SEC filings. That is a 24 per cent premium to Hillshire’s closing price Friday of $36.23.

Pilgrim’s Pride says the deal is a better offer than Hillshire’s plan to buy Pinnacle Foods for $4.23 billion. Pinnacle makes Birds Eye frozen vegetables and Duncan Hines cake mixes.

Hillshire brands did not respond to a request for comment. Its shares jumped 23 per cent to $45.49 in premarket trading.

Pilgrim’s Pride says the deal could close in the third quarter of 2014 if Hillshire terminates its deal with Pinnacle.

News from © The Associated Press, . All rights reserved.
This material may not be published, broadcast, rewritten or redistributed.

Join the Conversation!

Want to share your thoughts, add context, or connect with others in your community? Create a free account to comment on stories, ask questions, and join meaningful discussions on our new site.

Leave a Reply

The Associated Press

The Associated Press is an independent global news organization dedicated to factual reporting. Founded in 1846, AP today remains the most trusted source of fast, accurate, unbiased news in all formats and the essential provider of the technology and services vital to the news business. More than half the world’s population sees AP journalism every day.