Sanderson Farms, the third-largest poultry producer in the United States, will be purchased by Cargill and Continental Grain Co. for $4.53 billion. Sanderson Farms sells frozen chicken to several U.S. retailers and restaurants.
Upon completion of the transaction, Cargill and Continental Grain will combine Sanderson Farms with Wayne Farms, a subsidiary of Continental Grain, to form a new, privately held poultry business. The acquisition gives Continental Grain control of about 15 percent of the U.S. chicken market, reported Reuters.
The new company’s operations will include poultry processing plants and prepared foods plants across Alabama, Arkansas, Georgia, Louisiana, Mississippi, North Carolina and Texas.
The transaction is expected to close by the end of 2021 or early 2022.
Wayne Farms CEO Clint Rivers will lead the combined company.
The sale is during a time meat prices have been increasing, which is affecting consumers and local restaurants.