AdvancePierre Foods Holdings Inc (NYSE:APFH) will be acquired by a provider of prepared foods.
Tyson Foods, Inc. (NYSE:TSN) — which makes ready-to-eat pork and chicken products — announced that it will be acquiring the company in a deal that will set the company back $4.2 billion.
AdvancePierre Foods — which only went public about a year ago — is also in the business of preparing ready-to-eat meals, and the unison of the two companies will allow both brands to gain a larger market share of the industry.
The move will see Tyson acquire all of AdvancePierre’s outstanding common shares for $40.25 per share in cash, while also assuming about $1 billion in debt. The deal is a 9.8% premium on APFH’s stock price of $36.67 at the close of Monday.
Tyson CEO Tom Hayes issued a statement discussing the purchase and how the move will help feed the world in a more sustainable manner with its protein-centric products.
“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,” he added.
APFH shares soared 10.4% Tuesday, while TSN stock took a 0.4% dip on the day. AdvancePierre has a market cap of $3.38 billion as of mid-afternoon Tuesday, while Tyson Foods has a market cap of $23.33 billion.
