Tyson Foods, Springdale, Ark., agreed to acquire beef and pork marketer IBP Inc. for $3.2 billion in cash and stock. The acquisition will make Tyson, already the largest poultry producer, the leading producer of beef and pork as well, and will triple Tyson's annual sales to an estimated $24 billion a year, according to a company spokesman. Tyson has in recent years focused on building its eponymous brand through value-added prepared products that it has advertised extensively to consumers. Tyson spent $20 million on measured media in 1999, per Competitive Media Reporting. DDB
Worldwide, Chicago, handles the Tyson account. The key to the IBP acquisition will be extending those marketing skills to the new portfolio of products, which includes some prepared foods but mainly fresh meat products.
Copyright January 2001, Crain Communications Inc.