Cargill, Continental to Buy Sanderson Farms for $4.5 Billion

  • Sanderson to be combined with Wayne Farms, led by Wayne’s CEO
  • Buyers will run company as joint venture, privately held
Chicken Sandwich Craze Hits M&A Market
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Cargill Inc. and Continental Grain Co. are buying U.S. chicken producer Sanderson Farms Inc. for $4.53 billion in cash as demand for poultry and other food products increase.

The deal values the Laurel, Mississippi-based company at $203 a share, according to a statementBloomberg Terminal. That’s an 11% premium from the close on Friday. The two buyers will combine Sanderson with Continental Grain’s Wayne Farms LLC and run it as a privately-held joint venture.