011001 Tyson Acquisition of IBP CompleteOctober 3, 2001Tyson Foods Inc. completed its acquisition of IBP Inc. after IBP shareholders approved the $3.2 billion deal on Friday. More than 98% of shareholders voted in favor of the acquisition, Dakota Dunes, S.D.-based IBP said. It is the nation's largest meatpacker. IBP shareholders will get about 2.4 Tyson shares for each IBP share they own. In August, Springdale, Ark.-based Tyson paid $30 a share in cash for slightly more than half of IBP's stock. Remaining IBP shares were converted Friday to Tyson stock. IBP stock no longer will be publicly traded. The $1.6 billion tender offer was part of Tyson's $3.2 billion cash- stock offer to acquire IBP. Tyson also will assume $1.5 billion in IBP debt. Tyson, already the world's largest poultry producer, now will be the largest protein provider in the world, the release stated. The company has about 28% of the U.S. beef market, 23% of the chicken market and 18% of the pork market. Revenue for fiscal year 2002 is projected at more than $25 billion. The combined company has more than 120,000 workers in more than 130 production sites nationwide. ` `We had a vision to combine these companies and create the world's leading protein provider," John Tyson, Tyson chairman and chief executive officer, said in the release. "Today's merger is an exciting step that accomplishes that vision." Spokesmen for IBP and Tyson did not immediately return phone messages left at their offices Friday. IBP will be a wholly owned subsidiary of Tyson. IBP's office complex in Dakota Dunes will remain the headquarters for IBP Fresh Meats, the release stated. The integration of the companies should be completed by the end of the year, IBP said. Tyson agreed to go forward with its offer to buy IBP after IBP sued Tyson this year when Tyson tried to withdraw its offer.
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