NEW YORK (The Deal) -- Tyson Foods (TSN) announced Thursday that it was joining the battle to acquire the Chicago-based maker of Jimmy Dean sausage, unveiling a $6.8 billion offer for Hillshire Brands (HSH) that tops Pilgrim's Pride (PPC) proposal, launched just two days earlier.
Springdale, Ark.-based Tyson, the nation's largest meat processor, said it would buy Hillshire for $50 a share in cash, valuing the target's equity at $6.13 billion based upon its nearly 123 million shares outstanding. Pilgrim's Pride offered $45 a share on Tuesday, implying an equity value of about $5.54 million.
Tyson's offer adds up to about $6.8 billion, the company said, which is $400 million more than Pilgrim's Pride $6.4 billion proposal. Tyson's offer is valued at 13.4 times Hillshire's trailing Ebitda versus the 12.5 times that Pilgrim's Pride is looking at.
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