New User:

-or-
Username:
Password:
Forgot your password?

Stock Market & Financial Investment News

News Breaks
June 9, 2014
10:27 EDTTSN, PF, HSH, PPCTyson knocks Pilgrim's out of Hillshire bidding with new offer
Shares of food processor and distributor Hillshire Brands (HSH) are rising after Tyson Foods (TSN) submitted an increased offer to acquire the company, prompting rival Pilgrim's Pride (PPC) to withdraw its own takeover proposal. WHAT'S NEW: Tyson submitted a unilaterally binding offer to acquire all outstanding shares of Hillshire for a price of $63 per share in cash. The offer was subject to Hillshire being released from its existing agreement to acquire Pinnacle Foods (PF) in accordance with the terms. The all-cash transaction is valued at approximately $8.55B including Hillshire's outstanding net debt and represented a multiple of 16.7x trailing 12 months adjusted EBITDA or 10.5x including $300M in synergies. Tyson said it expects that the proposed transaction would be marginally accretive to EPS on a cash basis in the first full fiscal year after completion and substantially accretive thereafter. The offer was unanimously approved by Tyson's board. Hillshire responded to Tyson by confirming that it received its competitor's offer, but the company's board has not approved the offer, has not changed its recommendation regarding the Pinnacle merger and isn't making any recommendation with respect to the Tyson offer. Hillshire said it does not have the right to terminate the merger pact with Pinnacle on the basis of the Tyson offer or enter into an agreement with Tyson prior to the termination. In response to Tyson's announcement, Pilgrim's Pride withdrew it's proposal to acquire Hillshire Brands and said it realized that it was in the best interest of its shareholders not to increase its proposed price of $55.00 per share in cash for Hillshire. WHAT'S NOTABLE: During Tyson's conference call which discussed its offer to acquire Hillshire, the company said the deal would double prepared foods sales from 18% of revenue and quadruple operating income from prepared foods to 20% from 5%. Tyson believes it can realize significant annual synergies in excess of $300M by year three and has been thinking for "a lot of time" about Hillshire. Tyson expects the combined company's weighted average interest cost to be roughly 3.5% and noted that ROIC would drop below 20% in the first year, but says the company is "committed" to a ROIC target of 20%. Tyson foresees EPS to return to an annual growth rate in excess of 10%. Tyson confirmed that Hillshire is not allowed to accept the offer until the deal with Pinnacle is terminated. PRICE ACTION: During morning trading, shares of Hillshire Brands rose 5% to $61.85. Meanwhile, Pinnacle Foods rose 0.8% to $31.81, Tyson Foods fell 5% to $38.08, and Pilgrim's Pride fell 6.4% to $24.60.
News For HSH;TSN;PPC;PF From The Last 14 Days
Sign up for a free trial to see the rest of the stories you've been missing.
March 6, 2015
07:55 EDTTSNTyson Foods management to meet with BB&T
Meeting to be held in Kansas City/ Chicago on March 9 hosted by BB&T.
February 24, 2015
07:21 EDTPFPinnacle Foods sees FY15 adjusted EPS $1.86-$1.91, consensus $1.91
Sees FY15 input cost inflation estimated at 3%-3.5%; Sees FY15 productivity estimated at range of 3%-4%. Sees FY15 effective tax rate of 38%.
07:20 EDTPFPinnacle Foods reports Q4 Birds Eye Frozen sales up 4.9% to $317.4M
Reports Q4 Duncan Hines Grocery down 3% to $305.4M; Reports Q4 Specialty Foods sales down 10.3% to $82.6M.
07:20 EDTPFPinnacle Foods reports Q4 EPS excl items 64c, consensus 64c
Reports Q4 revenue $705.3M, consensus $718.35M. North America Retail net sales increased 0.9% to $622.7 million in Q4.

Sign up for a free trial to see the rest of the stories you've been missing.

I agree to the theflyonthewall.com disclaimer & terms of use