Wayne Farms completes divestiture of Laurel poultry production complex to Amick Farms

Rhea-AI Summary

Wayne Farms LLC has finalized the sale of its Fresh Processing Complex in Laurel, Mississippi, to Amick Farms as of October 17, 2021. This divestiture is part of a larger transaction that aims to merge Wayne Farms with Sanderson Farms, under the joint ownership of Cargill and Continental Grain. The deal is anticipated to close by the end of 2021 or early 2022. Amick Farms will continue operations at the Laurel facility, maintaining its workforce and community ties. The transaction received stockholder approval from Sanderson Farms on October 21, 2021.

Positive

• Completion of the sale indicates progress in merging Wayne Farms and Sanderson Farms.
• Amick Farms has committed to maintaining operations, benefiting the local workforce and community.

Negative

• None.

OAKWOOD, Ga., Oct. 22, 2021 /PRNewswire/ -- Wayne Farms LLC, a subsidiary of Continental Grain Company, announced today that on October 17, 2021, it completed the sale of its Fresh Processing Complex in Laurel, Mississippi, to Amick Farms. The complex includes live production, hatchery, feed mill, manufacturing and production facilities. The divestiture is a key milestone towards completing the previously announced transaction which will combine Wayne Farms and Sanderson Farms, Inc. (NASDAQ: SAFM) under the joint ownership and control of Cargill and Continental Grain.

Clint Rivers, President and CEO of Wayne Farms LLC, said, "We've had a very long and positive relationship with the Laurel community, and we're glad we've been able to reach an agreement with a solid operator like Amick Farms who shares our values and will continue that community partnership. The decision to sell the Laurel facility was not easy for Wayne Farms, but this is an important step in completing the proposed transaction with Sanderson Farms. We are thankful for Amick Farms' commitment to the Laurel workers and the community, and we're confident the plant will continue to operate and thrive under their ownership."

As previously announced on August 9, Cargill, Continental Grain and Sanderson Farms reached a definitive agreement for a joint venture between Cargill and Continental Grain to acquire Sanderson Farms and combine it with Wayne Farms to form a new, privately held U.S. poultry business with a high-quality asset base, complementary operating cultures, and an industry-leading management team and workforce. On October 21, Sanderson Farms stockholders approved the transaction during a special meeting of stockholders, completing another key milestone in the closing process. The transaction is expected to close by the end of 2021 or early 2022, subject to regulatory approvals, and other customary closing conditions.

Based in Batesburg, SC, Amick Farms currently operates two other vertically integrated facilities in South Carolina and Maryland, employing approximately 3,000 employees. Financial terms of the sale were not disclosed.

William Blair served as financial advisor and Boles Holmes White, LLC served as legal advisor to Wayne Farms in this transaction. Nexsen Pruet served as legal advisor to Amick Farms.

Media Contact
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About Wayne Farms LLC
Wayne Farms LLC is the seventh-largest vertically integrated poultry producer in the U.S. with annual sales exceeding $2 billion. A subsidiary of Continental Grain Company, Wayne Farms owns and operates 10 fresh and further-processed facilities throughout the Southeast, produces more than 2.6 billion pounds of poultry products each year, and employs more than 9,000 individuals. Producing products under the brand names of WAYNE FARMS® fresh and prepared chicken; PLATINUM HARVEST® premium fresh chicken; CHEF'S CRAFT® gourmet chicken; NAKED TRUTH® premium chicken; and LADYBIRD SELECT™ premium chicken, Wayne Farms has a well-known history of delivering exceptional poultry products to some of the largest industrial, institutional, and foodservice companies across America.

 

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SOURCE Wayne Farms, LLC

FAQ

What is the significance of Wayne Farms completing the sale to Amick Farms?

The sale is a significant step in merging Wayne Farms with Sanderson Farms, aimed at creating a new poultry business.

When was the sale of the Laurel Processing Complex finalized?

The sale was completed on October 17, 2021.

What is the expected timeline for the full merger involving Sanderson Farms and Wayne Farms?

The merger is expected to close by the end of 2021 or early 2022, pending regulatory approvals.

What operations will Amick Farms maintain after the acquisition of the Laurel facility?

Amick Farms will continue to operate the Laurel facility while keeping its workforce and community ties intact.

Who advised Wayne Farms during the sale to Amick Farms?

William Blair served as the financial advisor, and Boles Holmes White, LLC served as the legal advisor for Wayne Farms.