Hillshire Brands
| Company type | Public (before acquisition) |
|---|---|
| Industry | Food manufacturing |
| Predecessor | Sara Lee Corporation (divestiture) |
| Founded | June 29, 2012 in Chicago, Illinois, U.S. |
| Defunct | June 30, 2014 |
| Fate | Acquired by Tyson Foods |
| Successor | Tyson Foods (division) |
| Headquarters | Chicago , United States |
Area served | United States |
| Products | Packaged meat and frozen bakery items |
| Owner | Tyson Foods |
Number of employees | 9000+ (before 2014 acquisition) |
| Parent | Tyson Foods |
The Hillshire Brands Company was a U.S.-based food manufacturer headquartered in Chicago, Illinois. Prior to being acquired by Tyson Foods, the company employed more than 9,000 individuals and reported close to $4 billion in yearly revenue.
Formation and Initial Development
Hillshire Brands came into existence on June 29, 2012, as a result of the divestiture of the global coffee and tea segment from the former Sara Lee Corporation, which rebranded its remaining operations as Hillshire Brands. The company subsequently began trading on the NYSE under the ticker symbol HSH.
This separation included a one-for-five reverse stock split of Sara Lee shares, whereby shareholders exchanged their original shares for Hillshire Brands shares at a reduced ratio of one to five. In addition, former Sara Lee investors were issued one share each in D.E. Master Blenders 1753 along with a special cash dividend of $3 per share.
By May 2013, this spin-off was highlighted by Fortune as one of the top six most effective spin-offs among Fortune 500 corporations.
During fiscal year 2013, around 74% of Hillshire’s revenue originated from retail sales channels, while the remaining 26% derived from foodservice operations.
Discontinued Merger with Pinnacle Foods
In May 2014, Hillshire Brands revealed plans to acquire Pinnacle Foods—owner of brands such as Birds Eye, Duncan Hines, Hungry-Man, and Swanson frozen meals—in a $4.23 billion transaction involving both cash and stock. Soon after this announcement, Pilgrim's Pride countered with a $6.4 billion offer to purchase Hillshire Brands, jeopardizing the Pinnacle deal. Subsequently, Tyson Foods entered the bidding with a $6.13 billion cash proposal for Hillshire. On June 9, Tyson increased its offer to value Hillshire at $8.55 billion, prompting Pilgrim's Pride to withdraw its bid.
Tyson Foods Acquisition
On June 30, 2014, Pinnacle Foods canceled its agreement to buy Hillshire Brands, thereby enabling Tyson Foods to proceed with acquiring Hillshire. As part of the termination, Pinnacle received a breakup fee of $163 million plus approximately $25 million in one-time expenses related to the aborted transaction.
Portfolio
As a division of Tyson Foods, Hillshire Brands produced and distributed packaged meat and frozen bakery items catering to both retail consumers and foodservice providers. The company's extensive brand lineup featured names such as Jimmy Dean, Ball Park, Hillshire Farm, Kahns, State Fair, Sara Lee, Chef Pierre Pies, Aidells, Gallo Salame, and Golden Island Premium Jerky.
See also
External links
- (Redirects to Tyson Foods)
- Articles with short description
- Food and drink companies based in Chicago
- Food manufacturers of the United States
- Defunct manufacturing companies based in Chicago
- Food and drink companies established in 2012
- Food and drink companies disestablished in 2014
- American companies established in 2012
- American companies disestablished in 2014
- 2012 establishments in Illinois
- 2014 disestablishments in Illinois
- Companies formerly listed on the New York Stock Exchange
- 2014 mergers and acquisitions
- Tyson Foods
- Corporate spin-offs