The protein business continued its consolidation on Tuesday when Pilgrim Foods (NASDAQ:PPC) proposed to buy Hillshire Brands (NYSE:HSH) for $45/share ($6.4 billion enterprise value), a 22% premium to Hillshire's stock price prior to the announcement.
HSH data by YCharts
The proposed deal would create a combined $12.5 billion revenue and $1.5 billion EBITDA business with the potential for synergies. While I think the word "synergy" is overused as a reason for a business combination, this proposed deal does appear to include a number of strategic considerations.
First, the business combination would allow the new entity to be a player in two protein categories, poultry and pork, comprised of a number of iconic brands such as Jimmy...
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