Farm to table

25 April 2017 By Tom Buerkle

The poultry company is expanding its range of prepared foods by gobbling up AdvancePierre. Cost savings more than cover the 32 pct premium even before any revenue boost. Along with plans to carve off less wholesome morsels, Tyson is giving investors plenty to cluck about.

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Tyson Foods said on April 25 that it has agreed to acquire AdvancePierre Food Holdings for $40.25 a share in cash. The price represents a premium of 32 percent over the sandwich maker’s undisturbed share price on April 5, the last trading day before reports of a potential takeover first arose. The transaction values the company at $4.2 billion, including $1.1 billion in assumed debt.

Oaktree Capital Management, the alternatives investment firm that owns 42 percent of AdvancePierre, has agreed to tender its shares under the offer.

Morgan Stanley, which advised Tyson on the deal, has committed to provide bridge financing for the transaction. Credit Suisse and Moelis are advising AdvancePierre.

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