As the meat sector continues to evolve, a pivotal new move has recently been made involving Cargill and Continental Grain Company. Together, the pair have announced that they will acquire Sanderson Farms as part of a joint venture, and upon completion of the transaction will combine the company with Wayne Farms, a subsidiary of Continental Grain.
“We are pleased Sanderson Farms stockholders approved this transaction and thank them for their support,” said Joe Sanderson, Chairman and Chief Executive Officer of Sanderson Farms. “We believe this transaction will benefit our various stakeholders, including employees, poultry producers, and customers, and we remain focused on continuing to deliver the highest quality poultry products and services.”
Following a special meeting of stockholders held on October 21, 2021, an agreement was reached in which Cargill and Continental Grain would acquire Sanderson Farms for $203 per share in cash, according to a press release.
Preliminary results from the special meeting revealed that more than 86 percent of the outstanding shares, or more than 99 percent of votes cast, were in favor of the transaction. In total, approximately 87 percent of the outstanding shares of Sanderson Farms common stock were voted at the meeting, with the final voting results being filed with the U.S. Securities and Exchange Commission on a Form 8-K.
The acquisition is anticipated to close in the fourth calendar quarter of 2021 or the first calendar quarter of 2022 subject to regulatory approvals and other closing conditions.
With this new venture under their belts, how will Cargill and Continental Grain further strengthen their presence in the meat sector? Stick with Deli Market News to find out.