NEW YORK (TheStreet) -- Shares of Tyson Foods Inc. (TSN) are higher by 2.48% to $38.81 in mid-afternoon trading on Wednesday after the food production company announced a definitive merger agreement with Hillshire Brands Co. (HSH) valued at $8.55 billion, or $63 per share.
Tyson first made an offer for Hillshire, a food products manufacturer, and marketer, in June and will also pay $163 million to dissolve a merger deal between Hillshire and Pinnacle Foods Inc. (PF).
The deal is expected to close on September 27, the last day of Tyson's fiscal year.
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Separately, TheStreet Ratings team rates TYSON FOODS INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate TYSON FOODS INC (TSN) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows: