Cargill and Continental Grain Complete Acquisition of Sanderson Farms

Rhea-AI Summary

Cargill and Continental Grain Company have successfully completed their acquisition of Sanderson Farms (NASDAQ: SAFM) for $203 per share. This acquisition, first announced on August 9, 2021, results in Sanderson Farms no longer trading on NASDAQ as of July 22, 2022. The new entity, Wayne-Sanderson Farms, combines Sanderson Farms with Wayne Farms, a subsidiary of Continental Grain, and will operate from Oakwood, GA, under the leadership of Clint Rivers as CEO. This merger aims to leverage complementary operations and enhance product quality and affordability.

Positive

• Acquisition price of $203 per share provides liquidity for Sanderson Farms shareholders.
• Formation of Wayne-Sanderson Farms allows for combined resources and operational synergies.
• Strategic positioning for enhanced market competitiveness in the U.S. poultry sector.

Negative

• None.

MINNEAPOLIS and NEW YORK, July 22, 2022 /PRNewswire/ -- Cargill and Continental Grain Company today announced the completion of the previously announced acquisition of Sanderson Farms, Inc. (NASDAQ: SAFM) by a joint venture between Cargill and Continental Grain. The acquisition was announced on August 9, 2021.

Sanderson Farms shareholders are receiving $203.00 per each share of common stock they owned as of immediately prior to the completion of the transaction. As a result of the completion of the transaction, Sanderson Farms' shares will no longer trade on the NASDAQ beginning July 22, 2022.

As a part of the closing of the transaction, Cargill and Continental Grain have combined Sanderson Farms with Wayne Farms, a subsidiary of Continental Grain, forming a new privately held poultry business. The new business, named Wayne-Sanderson Farms, will be headquartered in Oakwood, GA. As previously announced, Clint Rivers, currently CEO of Wayne Farms, has been appointed CEO of the combined company.

Mr. Rivers said, "I am honored to lead the new Wayne-Sanderson Farms, which brings together a talented team with complementary operations and cultures and a strong commitment to employees, farmers and the communities where we operate. The new company is ideally positioned to continue to serve customers and consumers with high-quality and affordable products."

Wayne-Sanderson Farms is a best-in-class U.S. poultry company with a high-quality asset base, a strong operating culture, and an industry-leading management team and workforce. Operating chicken processing plants and prepared foods plants across Alabama, Arkansas, Georgia, Louisiana, Mississippi, North Carolina, and Texas, Wayne-Sanderson Farms has state-of-the-art operations and will continue to invest in its stakeholders, workforce and in employee safety.

Joe F. Sanderson, Jr. said, "It has been an incredible privilege to lead the Sanderson Farms team over the last thirty-three years and to continue my family's legacy by helping to nourish families across the country. I am proud of all we have achieved together, and I am confident that the fairness, honesty and integrity that has been synonymous with the Sanderson Farms name will carry on with Wayne-Sanderson Farms." 

BofA Securities acted as the financial advisor to Cargill and Freshfields Bruckhaus Deringer (US) LLP acted as legal counsel. Gibson Dunn & Crutcher acted as tax counsel. Centerview Partners LLC acted as financial advisor to Sanderson Farms and Wachtell, Lipton, Rosen & Katz, Fishman Haygood LLP and Brunini, Grantham, Grower & Hewes, PLLC acted as legal counsel. Lazard acted as the financial advisor for Wayne Farms and Continental Grain, and Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal counsel. Also acting for Cargill and Continental Grain were Arnold & Porter Kaye Scholer LLP as special antitrust counsel and Jones Walker LLP as Mississippi counsel.

About Cargill

 Cargill's 155,000 employees across 70 countries work relentlessly to achieve our purpose of nourishing the world in a safe, responsible, and sustainable way. Every day, we connect farmers with markets, customers with ingredients, and people and animals with the food they need to thrive. We combine 156 years of experience with new technologies and insights to serve as a trusted partner for food, agriculture, financial and industrial customers in more than 125 countries. Side-by-side, we are building a stronger, sustainable future for agriculture.

About Continental Grain Company

Continental Grain is a privately owned global investor, owner, and operator of companies with more than 200 years of history across the food and agribusiness spectrum. It creates long–term value by applying deep industry knowledge, capital and talent to businesses ranging from established market leaders to promising innovators, working alongside trusted partners, and supporting strong management teams. It brings a long–term ownership mindset, concentrating on investment and operating plans that create enduring value and a sustainable, efficient, and nutritional food supply chain. Continental Grain brings people, ideas, and resources together to build the businesses that will feed the world.

 

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SOURCE Cargill, Inc.

FAQ

What was the acquisition price per share for Sanderson Farms?

Shareholders received $203 per share as part of the acquisition.

When did Cargill and Continental Grain complete the acquisition of Sanderson Farms?

The acquisition was completed on July 22, 2022.

What is the new company formed from the acquisition of Sanderson Farms?

The new company is named Wayne-Sanderson Farms.

Who is the CEO of Wayne-Sanderson Farms?

Clint Rivers has been appointed as the CEO of Wayne-Sanderson Farms.

What impact does the acquisition have on Sanderson Farms' NASDAQ trading?

Sanderson Farms shares will no longer trade on NASDAQ from July 22, 2022.