Pilgrim's Pride Proposes To Buy Hillshire Brands For $45/Shr Cash - Quick Facts

By RTT News, 
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(RTTNews.com) - Chicken products maker Pilgrim's Pride Corp. ( PPC ) has made a proposal to acquire Hillshire Brands Co. ( HSH )for $45.00 per share cash, in a $6.4 billion worth transaction.

Pilgrim's all-cash proposal provides Hillshire shareholders with a substantially superior alternative to Hillshire's pending acquisition of Pinnacle Foods Inc. ( PF ), representing a 25% premium to the volume weighted average price of Hillshire shares over the 10 trading days following the announcement of the Pinnacle transaction. Also, the transaction represents a compelling value to Hillshire shareholders at 12.5x Hillshire's trailing adjusted EBITDA, including the $163 million termination fee payable to Pinnacle.

Pilgrim's Pride expects to finance the acquisition with a combination of existing cash balances and new debt financing. The proposed transaction may close in the third quarter of 2014. The proposal has the unanimous support of Pilgrim's board, as well as the support of JBS S.A., the majority owner of Pilgrim's.

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This article appears in: News Headlines

Referenced Stocks: HSH , PF , PPC

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