US meat processor Tyson Foods has concluded the acquisition of AdvancePierre for an approximate transaction value of $4.2 billion.
With a workforce of 4,500, AdvancePierre makes snacks and ready-to-eat sandwiches, generating revenue of $1.6 billion in 2016.
According to Tom Hayes, president and chief executive officer of Tyson Foods, the merger of Tyson and AdvencePierre Foods is expected to generate synergies of about $200 million during the next three years. The acquisition is expected to strengthen Tyson Foods’ position in the market for prepared foods, the firm added.
“AdvancePierre is a natural, strategic fit that will extend our capabilities in new and growing food categories”, commented Mr Hayes. “We expect the acquisition to immediately contribute to earnings and are also confident it will result in cost synergy benefits of $200 million within three years”.
Source: Food Business News