Tyson Foods Outbids Pilgrim’s Pride for Hillshire Brands (TSN, HSH)

The Arkansas-based food producer Tyson Foods (TSN) made an offer to acquire Hillshire Brands Co. (HSH), the company known for its Jimmy Dean and Hillshire sausage brands, on Thursday.

Tyson Foods offered to buy Hillshire in a deal valued at $6.8 billion, a bid that tops that of Pilgrim’s Pride, a chicken producer, which had offered $6.4 billion for the same acquisition earlier this week. Tyson’s bid showcases the company’s efforts in expanding its supermarket food offerings. While both Pilgrim and Tyson’s bids are all-cash and assume Hillshire’s debt, Tyson’s is undeniably more aggressive; the company’s bid is nearly 18% higher than that of Pilgrim’s, valuing Hillshire at about $50 a share compared to the earlier offer, which equates to about $45 per share.

News of the Tyson bid sent shares of Hillshire soaring nearly 18% on the day, or up $7.94, settling at $52.76 a share as the closing bell rang. Shares of Tyson Foods also rallied higher on Thursday, gaining $2.50, or 6.13%. From a year-to-date perspective, Hillshire and Tyson shares are up 57% and 29%, respectively.