Tyson Foods to Acquire AdvancePierre Foods Holdings
On April 25, 2017, Tyson Foods, Inc. (NYSE: TSN) (“Tyson”) and AdvancePierre Foods Holdings, Inc. (NYSE: APFH) (“AdvancePierre”) announced that they had entered into a definitive agreement that Tyson will acquire AdvancePierre. Tyson is a worldwide food company that operates in four main segments: chicken, beef, pork, and packaged foods. AdvancePierre produces and distributes proteins and sandwich products to foodservice and retail markets, schools, and convenience channels throughout the U.S. The combination of the two companies creates an opportunity to create value in two complementary market-leading portfolios. Below are strategic and financial rationales that Tyson and AdvancePierre have identified:
- Joins market leaders with complementary product portfolios
- Furthers Tyson’s leadership in prepared foods segment
- Enhances Tyson’s financial profile
- Creates significant cost and revenue synergies
Under the terms of the Agreement, Tyson will acquire the outstanding common shares of AdvancePierre for $40.25 per share in cash. The offer represents a 41.6 percent premium to the Company’s 60-day volume-weighted average trading price ending on April 5, 2017. This creates a total enterprise value approximately $4.2 billion, including $3.2 billion in equity value, while $1.1 billion in assumption of AdvancePierre debt. The transaction is expected to close in the third quarter of Tyson’s fiscal 2017.
Read the full press release at www.tyson.com
Below are highlights of additional Merger and Acquisition activity from the last week:
Specialty Chemicals M&A News: On April 24, 2017 KMG (NYSE: KMG), a global provider of specialty chemicals, announced that it has signed a definitive agreement to acquire Flowchem, a leading manufacturer of pipeline performance products. The total transaction is valued at approximately $495 million in cash, including working capital of approximately $17 million. The closing is anticipated to occur mid-June 2017.
Read more at www.kmgchemicals.com
Aerospace M&A News: On April 25, 2017 HEICO Corporation (NYSE: HEI) announced that it has officially completed its previously announced acquisition of Air Cost Control (“A2C”), a distributor of electrical parts for the aerospace industry. HEICO acquired 80.1 percent of the operating units of A2C from the founders. A2C will operate under HEICO’s Flight Support Group.
Read more at www.heico.com
Industrial Machinery M&A News: On April 27, 2017 Lincoln Electric Holdings, Inc. (NASDAQ: LECO) announced that it had entered into a definitive agreement with Air Liquide to acquire its Air Liquide Welding subsidiary. Lincoln Electric designs, manufacturers, and sells welding, cutting, and brazing products worldwide. The transaction is valued at approximately $125 million and is expected to close in the second half of 2017.
Read more at www.lincolnelectric.com
