Meat and Poultry Industry News

Tyson, Hillshire Brands complete merger

Tyson Foods Inc. announced the completion of its merger with The Hillshire Brands Company, a transaction that positions Tyson Foods as a clear leader in the prepared foods business. In connection with the merger, shares of Hillshire Brands common stock will be delisted and cease trading on the New York Stock Exchange and Chicago Stock Exchange before the opening of the respective markets on August 29, 2014.

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 Tyson, Wright, Jimmy Dean, Ball Park, State Fair and Hillshire Farm.  

“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.

Andy Callahan, former president of Hillshire’s retail business, will manage all retail consumer brands, including the legacy Hillshire consumer brands (such as Jimmy Dean, Ball Park, Hillshire Farm and Sara Lee), Tyson’s consumer brands (such as Tyson frozen, value-added poultry and Wright Brand bacon) and Hillshire’s Gourmet Food Group.

Sally Grimes, former chief innovation officer and president of Hillshire’s Gourmet Food Group, will lead Tyson’s innovation (including research and development), sales and global brand strategy teams to support all products sold through retail channels and to maximize global growth of our consumer brands.

Donnie King, former president-Prepared Foods, Customer and Consumer Solutions for Tyson Foods, will oversee Tyson’s legacy poultry, fresh meats and non-branded prepared foods businesses as well as the combined Tyson Foods and Hillshire foodservice businesses. Those reporting to him will include Steve Stouffer who will lead fresh meats; Noel White who will lead poultry; Wes Morris who will lead prepared foods operations; and Tom Hayes, currently chief supply chain officer for Hillshire Brands, who will lead the combined Tyson and Hillshire foodservice businesses.

Those continuing to report to Donnie Smith will include David Van Bebber, who leads the Tyson legal team; Sara Lilygren, who leads corporate affairs; Dennis Leatherby, who continues as the company’s chief financial officer; Hal Carper, who heads strategy and new ventures; Mike Roetzel, who oversees operations services; and Russell Tooley, who heads the company’s business process and continuous improvement practice.  

Ken Kimbro, who has led Tyson Foods’ human resources functions since 2001, will be transitioning into retirement. He will be replaced by Mary Oleksiuk, former chief human resources officer for Hillshire Brands.

Malik Sadiq, senior vice president-Asia Pacific, will oversee Tyson International on an interim basis. He takes the place of James Young who will be transitioning to our Cobb-Vantress breeding stock subsidiary in the coming months.

“This is an awesome team and they’re prepared to make this integration process smooth and efficient while we continue to exceed the expectations of our customers and consumers,” Smith said.

Sean Connolly, former president and chief executive officer of Hillshire Brands, has chosen to pursue other interests, but will consult during the integration process. 

Source: Tyson Foods Inc.

Recent Articles by Industry News

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

Podcasts

Brenneman analyzes Butterball’s new animal care, well-being program

Rod Brenneman, CEO of Butterball, discusses his company's new Animal Care and Well-Being Program, his company's certification by the American Humane Association and further animal-handling initiatives, all officially announced in September 2013.

More Podcasts

National Provisioner

0315np_cover.jpg

March 2015

The March 2015 issue of NP features: Ingredients: In search of the right spice; Packaging: Will solvent-based continuous printing expire?; and a new column, Get Real with Beef: Regionality brings out the best.
Table Of Contents Subscribe

Independent Processor

.

February 2015

The February issue of IP features cover story: The great speckled bird. 

Table Of Contents Subscribe

Provisioner Store

NP-SB-2014Cover.jpg
The National Provisioner Source Book

The Sourcebook is an exclusive buyer’s guide and reference tool for product and supplier information in the meat, poultry and seafood marketplace.

More Products

Sourcebook

A complete reference guide to supplies. Go to NP's Sourcebook now to check out the latest and greatest in the meat and poultry processing business.

STAY CONNECTED

Facebook icon Twitter icon  YouTube iconLinkedIn icon google +

eNewsletters

Provisioner Prime is a twice weekly electronic newsletter created by the editors of The National Provisioner. Provisioner Prime appears in your inbox every Tuesday and Thursday with a recap of the week's top news and trends. Provisioner Prime also offers you exclusive access to industry analysis, blogs, events, podcasts, videos, webinars and The National Provisioner feature articles. 

Sign up for Provisioner Prime HERE.