Poultry: the new US national champion is born
Cargill and Continental Grain take over Sanderson Farms
A joint venture between Cargill and Continental Grain will acquire Mississippi poultry giant Sanderson Farms ($ 3.5 billion in revenue in 2020) with an offer of $ 203 per share in cash, equal to a total company valuation of 4.53 billions. Upon completion of the transaction, Cargill and Continental Grain will merge the latter's subsidiary Wayne Farms with Sanderson Farms to form a new (unlisted) US poultry company. And it will be a new national champion of the poultry sector, with a turnover of the order of 6 billion dollars.
Clint Rivers, CEO of Wayne Farms, will lead the new company, which will operate poultry processing plants and prepared food facilities in Alabama, Arkansas, Georgia, Louisiana, Mississippi, North Carolina and Texas.
The transaction is expected to close by the end of the year or early 2022 and will be subject to regulatory and shareholder approval and other customary closing conditions.
EFA News - European Food Agency