Sanderson Farms Inc. announced that at a special meeting of stockholders held Oct. 21, its stockholders approved the previously announced agreement for a joint venture between Cargill and Continental Grain to acquire Sanderson Farms for $203 per share in cash. 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.
“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.”
According to the preliminary results announced at the special meeting, more than 86% of the outstanding shares, or more than 99% of the votes cast, voted in favor of the transaction. In total, approximately 87% of the outstanding shares of Sanderson Farms common stock were voted at the special meeting. The final voting results will be filed with the U.S. Securities and Exchange Commission on a Form 8-K.
The transaction is expected to close in the fourth quarter of 2021 or in the first quarter of 2022 and is subject to regulatory approvals and other customary closing conditions.
Wayne Farms completes divestiture
Wayne Farms announced last week that it has completed the sale of its fresh processing complex in Laurel, Mississippi, to Amick Farms. The complex includes live production, hatchery, feed mill, manufacturing and production facilities. The divestiture is a key milestone towards completing the transaction that will combine Wayne Farms and Sanderson Farms.
"We've had a very long and positive relationship with the Laurel community, and we're glad we've been able to reach an agreement with a solid operator like Amick Farms who shares our values and will continue that community partnership,” said Clint Rivers, president and CEO of Wayne Farms LLC. “The decision to sell the Laurel facility was not easy for Wayne Farms, but this is an important step in completing the proposed transaction with Sanderson Farms. We are thankful for Amick Farms' commitment to the Laurel workers and the community, and we're confident the plant will continue to operate and thrive under their ownership."