A joint venture between agribusinesses Cargill and Continental Grain Co. have forged a deal to purchase poultry producer Sanderson Farms for a total equity value of $4.53 billion, the parties announced in a release Monday.
Following the transaction, the JV will merge Sanderson Farms with Continental’s poultry subsidiary, Wayne Farms. The combined businesses will be operated as a privately held poultry business.
“Expanding our poultry offerings to the US is a key enabler of our ability to meet customer and consumer demands,” Cargill CEO and Chairman David MacLennan said in a statement. “With these great businesses, and our strong partnership, we believe we will deliver a strong portfolio of products and services to our customers.”
Cargill said the transaction positions the companies to generate organic growth and capitalize on major consumer trends around health, sustainability, and versatility of chicken products.
“We are proud to be joining with Cargill and Continental Grain and we are confident that they will be strong stewards of the Sanderson Farms team, brand, and assets moving forward,” said Joe Sanderson, chairman and CEO of Sanderson Farms,” in the release. “As part of the newly created company, Sanderson Farms and its new owners will remain committed to the employees, poultry producers, customers, communities, environment, and animals under our care, and to continuing to deliver the highest quality products and the best service in our industry to our customers.”
Wayne Farms CEO Clint Rivers was named to lead the new combined business. The sale is projected to close by the end of this year or early 2022.