Cargill, Continental Grain purchase Sanderson Farms
Cargill, Continental Grain Company, and Sanderson Farms, Inc. announced on Aug. 9 they have reached an agreement for Cargill and Continental Grain to acquire Sanderson Farms for $203 per share in cash, representing a total equity value for Sanderson Farms of $4.53 billion.
Once the transaction is final, which is expected to occur by early 2022, Cargill and Continental Grain will combine Sanderson Farms with Wayne Farms, a subsidiary of Continental Grain, to form a new privately held poultry business.
Sanderson Farms operates a poultry processing plant in Colquitt County. Wayne Farms, headquartered in Hall County, has a poultry processing plant in Jackson County.
The combination of Sanderson Farms and Wayne Farms will create a U.S. poultry company with a high-quality asset base, complementary operating cultures, and an industry-leading management team and workforce, according to a Cargill press release.
The new company will have poultry processing plants and prepared foods plants across Alabama, Arkansas, Georgia, Louisiana, Mississippi, North Carolina, and Texas.
Cargill expects to support the new joint venture with its longstanding relationships with retail and foodservice customers. Wayne Farms, part of Continental Grain’s food, agriculture and commodities investment portfolio since 1965, has roots in the poultry industry that go back more than a century.
The sale will be subject to approval from regulatory agencies, Sanderson Farms stockholders and other customary closing conditions. Wayne Farms CEO Clint Rivers will lead the combined company. Upon the completion of the transaction, Sanderson Farms will become a private company, and its shares will no longer be traded on NASDAQ.