The Hillshire Brands Company was an American food company based in Chicago, Illinois. Prior to its acquisition by Tyson Foods, the company employed over 9,000 people and generated nearly $4 billion in annual sales.[1]
History
Founding and early years
Hillshire Brands made its debut on June 29, 2012, after the former Sara Lee Corporation spun off its international coffee and tea division and renamed the remaining units of the company Hillshire Brands. It began trading on the NYSE that same day under the ticker HSH.[2]
Under the terms of the deal, Sara Lee's stock underwent a one-for-five reverse split. As of June 27, 2012, all Sara Lee shareholders saw their holdings transform into Hillshire Brands shares and shrink by a factor of five. In addition, each former Sara Lee shareholder received shares in D.E. Master Blenders 1753 on a one-to-one basis. The company paid out a concurrent $3 special cash dividend on all D.E Master Blenders 1753 shares.[3]
In May 2013 the split was recognized among the six most successful Fortune 500 companies’ spinoffs by Fortune.[4]
During the fiscal year 2013 roughly three quarters of Hillshire's revenues (74%) were generated through retail channels while the foodservice business accounted for 26% of the company's sales.[5]
Abandoned merger with Pinnacle Foods
In May 2014, Hillshire Brands announced it was buying Pinnacle Foods for US$4.23 billion in a cash and stock deal. Pinnacle Foods brands include Birds Eye, Duncan Hines, Hungry-Man and Swanson frozen TV dinners, among many others.[6] Days later, Pilgrim's Pride threatened the deal with its own bid for Hillshire Brands for $6.4 billion.[7] To complicate matters further, on May 29, 2014, Tyson Foods announced a $6.13 billion cash bid for Hillshire Brands. On June 9, 2014, Hillshire announced it had received a revised bid from Tysons valuing the company at $8.55 billion. Pilgrim's Pride simultaneously announced it had withdrawn its bid.[8]
Acquisition by Tyson Foods
On June 30, 2014, it was announced that Pinnacle Foods had scrapped its sale to Hillshire Brands, which would allow Hillshire to be acquired by Tyson Foods. Pinnacle would receive a $163 million payment as part of the breakup from Hillshire, and Pinnacle would also receive an expected $25 million in one-time costs connected to the nixed sale.[9][10]
Portfolio
Hillshire Brands was a manufacturer and marketer of packaged meat and frozen bakery products for the retail and foodservice markets, and a wholly owned subsidiary of Tyson Foods. The company's portfolio of brands included Jimmy Dean, Ball Park, Hillshire Farm, Kahns, State Fair, Sara Lee, Chef Pierre Pies, Aidells, Gallo Salame and Golden Island Premium Jerky.[11][12]
See also
External links
- (Now redirects to Tyson Foods)
References
- Hillshire Brands Company Financial Information Yahoo! Finance, 2014^
- Sara Lee splits, takes Hillshire name for N. American business USA Today, June 6, 2012^
- Looking Back: Sara Lee's Hillshire Brands Spin-Off Unlocks Value Arbideas, February 12, 2013, retrieved January 15, 2014^
- 6 spinoff successes CNN Money, May 6, 2013^
- Company Profile Reuters^
- Hillshire Brands Buying Pinnacle Foods for $4.23B ABC News, May 12, 2014, retrieved May 12, 2014^
- Lisa Baertlein. Pilgrim's bid for Hillshire puts pinnacle deal in peril Reuters, May 27, 2014, retrieved May 28, 2014^
- Tyson Foods wins battle to buy Hillshire Brands The Boston Journal, retrieved June 10, 2014^
- Pinnacle Foods Lets Hillshire out of Sale Pact ABC News, June 30, 2014, retrieved June 30, 2014^
- Trefis Team. Hillshire Brands Moves To End Pinnacle Deal In Light Of Tyson Foods' Offer Forbes, retrieved June 30, 2014^
- Hillshire Brands Annual Report Hillshire Brands, 2013^
- Kelsey Gee. Hillshire Brands to Acquire Van's Natural Foods The Wall Street Journal, retrieved March 8, 2016^