Laurel, Mississippi-based poultry producer Sanderson Farms agreed on Monday to be bought out by commodities trader Cargill Inc and investment firm Continental Grain Co for a sum of $4.53 billion. Cargill and Continental Grain offered $203 per share in Sanderson Farms, which is a premium of approximately 11% of the company’s stock’s closing price on Friday.
With restaurants returning to regular trading following the easing of pandemic restrictions, the demand for chicken and other meat products has surged. As a result, Sanderson Farms has experienced a significant rise in sales.
Continental Grain Co already expressed interest in purchasing Sanderson Farms in June, according to a report from Reuters. With offices and facilities in 10 countries, Continental is the owner of Wayne Farms, a poultry processor based in Oakwood, Georgia.
Founded in 1947, Sanderson Farms has grown into the third largest poultry supplier across the entire United States. As the only Fortune 100 company listed in the State of Mississippi, Sanderson Farms generated over $3.5 billion in profit over the course of 2020. Clearly, they’ve enjoyed enough success in their own right to “cash out” on a grand scale, and they’ve clearly been thinking about doing this for a while, but were just waiting for the right price.
