Tyson Foods Would Boost Prepared Foods in $8.5B Hillshire Deal

by Lance Turner  on Monday, Jun. 9, 2014 11:32 am  

"There can be no assurance that any transaction will result from the Tyson Foods offer," Hillshire said.

In a conference call on Monday, Smith said it was too early to talk about how the companies might combine operations, or whether the deal would consolidate plants, cause layoffs or result new roles for Hillshire executives like CEO Sean Connolly, who he called a "fantastic leader."

Still, Smith is expecting $300 million in annual synergies under the merger, including cost savings in distribution, purchasing, marketing and supply chain.

"We want to buy this business for what it can become, not just what it is now," Smith said.

Smith said Tyson Foods' interest in Hillshire came after planning about the company's future. He said company leaders met about a year ago to discuss long-term plans, including growing Tyson's prepared food segment and its valued-added chicken business.

Smith said when the company looked at potential mergers, Hillshire met all the criteria.

(The Associated Press contributed to this report.)



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