Tyson Foods is buying packaged-food maker AdvancePierre for $3.2 billion

Flickr/Robert Couse-BakerTyson Foods is expanding its dominant position in the US meat market.

Already the largest US meat company, Tyson agreed to buy packaged-food maker AdvancePierre Food Holdings for $3.2 billion.

The Springdale, Arkansas-based producer of chicken, beef and pork will pay $40.25 per share in cash for AdvancePierre. That's almost double the initial public offering price for AdvancePierre, which was taken public by Oaktree Capital at $21 per share in September 2016. The firm still owns 42% of the company's outstanding shares.

AdvancePierre's shares surged 9.1% in pre-market trading on the news.

"This combination will allows AdvancePierre to accelerate its growth and broaden its distribution network by leveraging Tyson's existing distribution infrastructure and go-to-market capabilities," AdvancePierre president and CEO Christopher D. Sliva said in a statement.

This story is developing.

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