LITTLE ROCK — Springdale-based Tyson Foods said Wednesday it has completed acquisition of Ohio-based AdvancePierre Foods Holdings, a leading national producer of ready-to-eat lunch and dinner sandwiches, sandwich components and snacks.
Tyson said in a news release it agreed to buy all the outstanding shares of common stock of AdvancePierre for $40.25 per share in cash, without interest. The total value of the transaction was about $4.2 billion.
AdvancePierre is now a wholly owned subsidiary of Tyson Foods. Its shares will cease to be traded on the New York Stock Exchange.
Tyson said AdvancePierre employs about 4,500 people and generated revenue of $1.6 billion in 2016. Its customers include food service, retail and convenience store providers.
“AdvancePierre is a natural, strategic fit that will extend our capabilities in new and growing food categories,” said Tyson Foods President and CEO Tom 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.”
Hayes said integration teams have been formed and that the company will remain focused on maintaining high-quality customer service during the transition.