IBP to Buy Foodbrands for $640 Million

Giant meat processor IBP Inc., seeking to tap into the growing market for foods prepared away from home, said it agreed to acquire Foodbrands America Inc., a food service supplier, for $640 million. IBP, based in Dakota City, Neb., said it offered to pay $23.40 a share for a total of $292 million in cash and to assume about $348 million in Foodbrands’ debt. IBP is the nation’s largest meatpacker. Oklahoma City-based Foodbrands makes more than 1,600 products, from pizza toppings and crust to soups and sauces. Its customers include restaurants, food service distributors and warehouse clubs in the United States and Europe. Foodbrands shares rose $7.375 to close at $23.125 on the NYSE; IBP rose 50 cents to close at $25.50, also on the NYSE.