Sanderson Farms Inc. (SAFM) agreed to sell to Cargill Inc. and Continental Grain Co. for $4.5 billion in cash in a deal announced Aug. 9.
Wayzata, Minn.-based Cargill and New York-based Continental Grain will combine Sanderson Farms with Oakwood, Ga.-based Wayne Farms LLC, a Continental subsidiary. Wayne Farms CEO Clint Rivers will head the combined company upon the deal’s closing, which the companies expect will occur in late 2021 or early 2022.
A person familiar with the situation told The Deal in June that Sanderson had attracted potential interest from Continental and had hired Wachtell, Lipton, Rosen & Katz to advise. Sanderson Farms rejected a hostile takeover bid from Durational Capital Management LP last year. The Laurel, Miss.-based poultry producer previously held a position on The Deal’s Watch List of potential activist targets.
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