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Tyson Foods has agreed to pay $7.7-billion (U.S.) for Hillshire Brands, paying more than 30 times earnings in an offer at a 70-per-cent premium to what the sausage maker was trading at before the bidding began.
Tyson Foods has agreed to pay $7.7-billion (U.S.) for Hillshire Brands, paying more than 30 times earnings in an offer at a 70-per-cent premium to what the sausage maker was trading at before the bidding began.
(Paul Sakuma/AP)

Why Tyson overpaid for its sausages

Food companies have gone on an epic binge – and there’s no sign it will slow down any time soon.

A combination of low interest rates and limited opportunities for organic growth is convincing many calorie producers that the only way to expand is by gobbling up the opposition. As they do so, prices for acquisitions are soaring.