Tyson Foods has announced the acquisition of AdvancePierre Foods, a maker of packaged foods, in a deal worth $4.2bn (including debt).
AdvancePierre produces and distributes convenient, ready-to-eat sandwiches, sandwich components and other entrées and snacks across the US. The company, which employs 4,500 staff, generated revenues of $1.6bn in 2016.
Tyson said AdvancePierre’s product categories are complementary to its own offer, and will boost its fast-growing portfolio of protein-packed brands. It also said the deal will help expand its fresh prepared foods offering for both out-of-home and in-home eating occasions.
The group noted: “We are always prudently evaluating opportunities to leverage our strengths to drive future growth, whether by divesting non-core, non-protein focused assets or by acquiring companies like AdvancePierre that enhance our capabilities in growing categories.”
The acquisition is expected to result in cost synergies of around $200m, to be fully realised within three years.