The acquisition of IBP by tyson foods in 2001: Pre- and post-merger financial performance

Michelle Wolfe, Scott Stressman, Mark Manfredo

Research output: Contribution to journalArticle

Abstract

One of the ways IBP originally kept costs down in relation to other firms was their use of lower-wage, non-union workers at a time when most meatpackers employed a union labor force. Consolidation in retail markets was also affecting IBP as the reduction in grocery retailers, IBP's primary consumers, necessitated a product strategy that was less supply-driven and more sensitive to these consumers' unique needs. The bidding for IBP continued on November 12, 2000, when Smithfield Foods Inc., the largest US hog and pork producer, made an unsolicited bid to acquire IBP for $2.7 billion in stock, plus a $1.4 billion assumption of debt. The only thing stopping the progress of the acquisition was a Securities and Exchange Commission (SEC) investigation into some of the accounting practices of a very small division of IBP called DFG.

Original languageEnglish (US)
Pages (from-to)642-647
Number of pages6
JournalAmerican Journal of Agricultural Economics
Volume93
Issue number2
DOIs
StatePublished - Jan 2011
Externally publishedYes

Fingerprint

groceries
retail marketing
debt
labor force
pork
Food
swine
Salaries and Fringe Benefits
Financial performance
Mergers
O,O-diisopropyl-S-benzylthiophosphate
Costs and Cost Analysis
Consolidation
Wages
Pork
Labor force
Accounting practices
Costs
Bidding
Securities and Exchange Commission

ASJC Scopus subject areas

  • Agricultural and Biological Sciences (miscellaneous)
  • Economics and Econometrics

Cite this

The acquisition of IBP by tyson foods in 2001 : Pre- and post-merger financial performance. / Wolfe, Michelle; Stressman, Scott; Manfredo, Mark.

In: American Journal of Agricultural Economics, Vol. 93, No. 2, 01.2011, p. 642-647.

Research output: Contribution to journalArticle

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