Tyson Foods is set to launch a tender offer to acquire US-based packaged sandwich maker AdvancePierre Foods for $4.2bn.

Funds affiliated with Oaktree Capital Management, which own a 42% stake in AdvancePierre’s common stock, also agreed to tender their AdvancePierre shares.

AdvancePierre president and CEO Christopher Sliva said: “By combining our complementary, market-leading portfolios, both companies will realise greater opportunities.

“This combination will allow AdvancePierre to accelerate its growth and broaden its distribution network by leveraging Tyson’s existing distribution infrastructure and go-to-market capabilities.”

Tyson anticipates that the transaction will result in cost synergies of approximately $200m, to be fully realised over the next three years.

Tyson president and CEO Tom Hayes said, “The AdvancePierre leadership team has created significant value through the implementation of a new business management model, focus on quality and service and attention to the growth opportunities in convenience foods. 

“This combination will allow AdvancePierre to accelerate its growth and broaden its distribution network by leveraging Tyson’s existing distribution infrastructure and go-to-market capabilities.”

“We believe that AdvancePierre and Tyson are a natural strategic fit and together will accelerate growth for customers by delivering on-trend, high-quality products consumers love.”

Subject to customary conditions, the transaction is expected to close in the third quarter of this year.