Tyson Foods to acquire AdvancePierre Foods for $4.2bn

Tyson Foods is set to launch a tender offer to acquire US-based packaged sandwich maker AdvancePierre Foods for $4.2bn.

Funds affiliated with Oaktree Capital Management, which own a 42% stake in AdvancePierre’s common stock, also agreed to tender their AdvancePierre shares.

AdvancePierre president and CEO Christopher Sliva said: “By combining our complementary, market-leading portfolios, both companies will realise greater opportunities.

“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.”

Tyson anticipates that the transaction will result in cost synergies of approximately $200m, to be fully realised over the next three years.

Tyson president and CEO Tom Hayes said, “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. 

“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.”

Subject to customary conditions, the transaction is expected to close in the third quarter of this year.

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Image: Sandwich placed on a table. Photo: courtesy of KEK064 via freedigitalphotos.net.