Cargill and Continental Grain close $4.5B purchase of Sanderson Farms

Dive Brief:

• Cargill and Continental Grain Company completed their long-delayed $4.53 billion purchase of Sanderson Farms, the companies said in a statement. The acquisition was announced on August 9, 2021, and creates the third-largest U.S. poultry processor. Sanderson shareholders are receiving $203 per share.
• The buyers said as part of the deal, they will combine Sanderson Farms with Wayne Farms, a subsidiary of Continental Grain, forming a new privately held poultry business. Clint Rivers, currently the CEO of Wayne Farms, will run the new venture called Wayne-Sanderson Farms.
• The closing of the deal — which was expected to occur in December 2021 or early 2022 — was delayed by a Department of Justice review of the transaction. Democratic lawmakers also have criticized the transaction, citing “significant antitrust concerns.”

Dive Insight:

Editor’s note: This story is developing and will be updated.