Pilgrim’s Pride Makes Proposal to Acquire Hillshire Brands
Pilgrim's Pride Corp., Greeley, Colo., announced plans to make a proposal to acquire The Hillshire Brands Co., Chicago, for $45 per share in cash, in a transaction valued at $6.4 billion.
Pilgrim's all-cash proposal provides Hillshire shareholders with a substantially superior alternative to Hillshire's pending acquisition of Pinnacle Foods Inc., representing a 25% premium to the volume weighted average price of Hillshire shares over the 10 trading days following the announcement of the Pinnacle transaction. Further, the transaction represents a compelling value to Hillshire shareholders at 12.5 times Hillshire's trailing adjusted EBITDA, including the $163 million termination fee payable to Pinnacle.