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Tyson Foods to buy AdvancePierre for US$3.2 b
[ARKANSAS] Tyson Foods Inc, the No 1 US meat processor, said on Tuesday it would buy packaged sandwich supplier AdvancePierre Foods Holdings Inc for about US$3.2 billion in cash, to expand its fast-growing portfolio of prepared foods.
Tyson's offer of US$40.25 per share is a 9.8 per cent premium to AdvancePierre's Monday close.
The deal, which has an enterprise value of about US$4.2 billion, includes US$1.1 billion of AdvancePierre debt.
AdvancePierre sells a variety of meat sandwiches and snacks through brands such as Landshire and Barber Foods.
Funds affiliated with investment manager Oaktree Capital Management LP, which own about 42 per cent of AdvancePierre, have agreed to support the deal.
Tyson had said on Monday it was exploring a sale of its three non-protein brands, including Sara Lee Frozen Bakery, to sharpen its focus on its core businesses.
The three brands - Sara Lee, the Kettle business and Van's - produce items such as frozen desserts, waffles, breakfast bars and soups. Rothschild is acting as Tyson's financial adviser for the sale.