Pilgrim's Pride, a chicken producer, has made an offer to buy Hillshire Brands in an all-cash deal worth $5.58 billion.
Pilgrim, the world’s second largest chicken processor, seeks to create a “protein-focused” company with Hillshire’s sausages and lunch meats, according to The Associated Press.
The offer depends on if Hillshire ends its plans to buy the Parsippany-based Pinnacle Foods Inc. for $4.23 billion. The deal was announced earlier this month as a way to expand into different sections of the supermarket.
Pilgrim told the AP that its offer is a “substantially superior” alternative that would help cut cuts on both ends costs by merging the operations. It also said that the deal would give its branded products more growth opportunities, the AP reported.
Pilgrim said that its deal is expected to close in the third quarter of 2014 and even offered to pay the $163 million termination fee if Hillshire ends its deal with Pinnacle, the AP reported.
ALSO ON NJBIZ: