The combination of Tyson Foods and Hillshire Brands creates a single company with more than $40 billion in annual sales and a portfolio that includes recognized brands such as
"As of today, Tyson Foods and Hillshire Brands are officially together in one great company," said Tyson Foods CEO Donnie Smith. "Part of our strategic growth plan has been to shift toward higher-margin prepared and branded foods. This transaction gives us a portfolio of complementary, proven brands as a new springboard and accomplishes in a short time what would have taken us years to build on our own."
The integration of the two companies is currently expected to generate synergy savings of $225 million in fiscal 2015 and more than $500 million by fiscal 2017.
Teams of people from Tyson and Hillshire have been working on integration plans since July to help make sure the combined company gets off to a good start.
"During this process, I’ve had a chance get to know many people on the Hillshire Brands team and the great work they’re doing, and I’m more convinced than ever that the future of our combined companies is bright," Smith said. "As excited as I am about our new brands, I’m equally excited about the combined talent of the two companies."
A new leadership team has been selected and includes a mix of existing senior leaders from Tyson Foods and Hillshire Brands.