June 9 (Reuters) - Tyson Foods Inc said it reached a "unilaterally binding offer" to buy Hillshire Brands Co for $8.55 billion, including debt, beating out Pilgrim's Pride Corp for the maker of Jimmy Dean sausages.
Tyson's increased offer of $63 per share represents a premium of nearly 7 percent to Hillshire's Friday closing price of $58.92.
Tyson, the world's second largest meat processor after Brazil's JBS SA, had earlier offered $50 per share, which valued Hillshire at $6.8 billion, including $500 million in debt.
Pilgrim's Pride, majority owned by JBS, raised its offer to $55 per share last week from $45 per share, valuing Hillshire at $7.7 billion, including debt. (Reporting by Devika Krishna Kumar in Bangalore; Editing by Kirti Pandey)