Wayne Farms CEO Clint Rivers will lead the new poultry business.
August 9, 2021
Cargill, Continental Grain Company, and Sanderson Farms have reached a definitive agreement for a joint venture between 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. The purchase price represents a 30.3% premium to Sanderson Farms’ unaffected share price of $155.74 on June 18, 2021, the last full trading day prior to media speculation about the potential sale of Sanderson Farms; a 22.8% premium to the Sanderson Farms 30-day volume weighted average price as of June 18, 2021, and a 15.2% premium to the all-time high share price as of June 18, 2021. Upon completion of the transaction, Cargill and Continental Grain will combine Sanderson Farms with Wayne Farms, a subsidiary of Continental Grain, to form a new, privately held poultry business.
Wayne Farms is continuing its expansion into the retail space with the launch of CHEF’S CRAFT Gourmet Chicken into grocery stores. The chef-inspired brand of products is now available for purchase at Walmart and Food Lion stores. The Flame Grilled Chicken Breast Fillet and Grilled Chicken Breast Chunks are being sold at about 2,400 Walmart stores and more than 1,000 Food Lions. The Breaded Chicken Breast Chunks will be available later this fall in stores. Each of these products are made from no-antibiotics, vegetarian-fed chickens.