And Mississippi becomes even more of an economic colony. The Wall Street Journal reported two companies will purchase Sanderson Farms for $4.5 billion:
Sanderson Farms Inc. agreed to sell itself for around $4.5 billion as the poultry giant rides a wave of demand for chicken products.
Cargill Inc. and agricultural-investment firm Continental Grain Co., which owns a smaller chicken processor, said Monday they reached a deal to take Sanderson private.
The deal values Sanderson at $203 a share, about 30% above the stock price before The Wall Street Journal reported in June that the company had attracted interest from suitors including Continental. The Journal reported Sunday that the three were nearing a deal.
Mississippi-based Sanderson is the country’s third-biggest chicken producer. It runs 13 poultry plants from North Carolina to Texas, processing about 13.6 million chickens a week....
Combining Sanderson with Georgia-based Wayne Farms LLC, a poultry company owned by Continental, would form a new competitor representing about 15% of U.S. chicken production, according to data from Watt Poultry USA....
Sanderson’s sales for the quarter ended April 30 climbed by about one-third and its profits jumped to $97 million, versus $6 million during the same period in 2020.... Article
47 comments:
But will they continue to sponsor the golf tournament? That's the only important question.
I'm gonna get me some wangs for lunch.
Demand is very high for Church’s $5 Bourbon Pepper Smokehouse chicken. I haven’t lines that long since Popeye’s debuted their chicken sandwich!
Yet another set of 3rd Gen and 4th Gen frat boys sells out and retires to the beach.
I hope the quality of their product doesn't decline. I prefer to buy Sanderson chicken over all other brands.
Good for their shareholders! The invisible hand works, despite all of the chicken littles claiming otherwise.
Sanderson is much bigger than Wayne Farms, there is a good chance the the HQ of the combined chicken operation stays here. Might even grow.
Big wave of M&A is hitting the USA due to all of the talk about raising capital gains rates too high. By the way, the little guy with some money in stocks might want to take a cue from what the 1% are doing. Cash in while you can.
$4.5 billion is nothing to cluck at.
@10:08
If they don’t support the golf tournament then they may lose their GOP protection from ICE raids like Sanderson Farms did.
I bet the golf tournament is history.
That purchase price ain't chicken feed.
@10:38
Sadly no. Wayne Farms CEO Clint Rivers will lead the combined company, which is headquartered in Oakwood GA. Lots of people in Laurel will lose their job.
This is nothing but a success story.
Sanderson is much bigger than Wayne Farms, there is a good chance the the HQ of the combined chicken operation stays here. Might even grow.
Your scenario is DOA, the chance is zilch. The truly pivotal employees will be retained, the rest are goners. If you are serious then it has to be due to your naiveté.
Hate this for the state. I think 11:49 is correct. Just go to the Wayne Farms website, look at the executive team and ask yourself, "Does this group look like it would move from an affluent suburb of Atlanta to Jones County, MS or would it close the old Laurel HQ to save money?"
Clint Rivers is running the show. The WF team ain't leaving Georgia for Mississippi.
Absolutely NOTHING in Sanderson HQ operation is unique. NOTHING.
Hard working people the Sandersons.
The kids worked hard and built upon a great business.
They also are responsible for every baked chicken costing $6.99. That is such a coincidence that every baked chicken you find at a grocery costs the exact same thing. And it’s cheaper than you can buy uncooked. Weird how that works….
Ya say the word...ya get the bird!
The Bourbon Pepper Smokehouse chicken is to die for.
Ate 3 at one sitting. China will be next to purchase
Cargill Inc. The Chinese will go ape-sh0t over the Bourbon Pepper Smokehouse chicken. They will call it 踢屁股 鸡舔.
We don't get a Golf Tourney. We get nothing nice. Wonder if they'll take up Peco to keep it open.
They extended sponsorship deal for 10 years in 2015 through the 2026 tournament. Hopefully that doesn't change.
@1:13
I agree that the Bourbon Pepper Smokehouse Chicken is divine!
What saddens me is that we have so few Church’s Chickens in the metro.
So much doom a gloom here. Go start your own billion dollar public company.
Just what we need - more Big Food consolidation. Don't blame them though.
At 1:03, maybe those baked chickens are the ones that fell off the truck or onto the floor during processing??
@2.07
The rotisserie chickens are the thawed whole chickens that are about 2 days from expiration.
Cooking them and selling them prevents billions in wasted meat. Walmart was the first to incest in industrial rotisserie’s for their delis to capitalize on the concept.
If you don't work directly with hatching, growing or processing birds, start looking for new work right now.
Don't believe that they will be bound to any contract for a Golf Tournament prior to their acquisition. Hopefully they will step up but.....
re-education camps are coming for you sheeple soon. MS will sell chicken and sheep
"Walmart was the first to incest in industrial rotisserie’s for their delis to capitalize on the concept"
That would fit in with our inbred money types and the strange ammonia taste.
But, more untaxed inheritance and degeneracy for the .01%! Win win.
where are all the hipsters for the “hometown” show going to work now?
so..how much tax revenue is MS going to lose? or, how much more of the federal money do we need to beg for?
1:13 you are probably correct! China is buying all of American as they can. Sad they are buying with our money!
Speaking of yard bird ...
Is the Tyson chicken recall over yet ?
I love their crispy chicken strips, but I don't want to get a bag with listeria or salmonella, or whatever they said was the reason for recall a few weeks ago.
Regarding the Sanderson Farms sale, it will be interesting if the new owners continue the golf tournament.
" Yet another set of 3rd Gen and 4th Gen frat boys sells out and retires to the beach. "
That comment sounds like something one would say if he didn't even make it through the first round of fraternity rush.
Continually growing big chicken is the only way Mississippi can lock in it's future by guaranteeing there won't be a chicken sh*t shortage!
If the chickens aren't pooping they are ready to be eaten!
The only company from Mississippi listed in the Fortune 1000 companies.
Gone to Wayne's World.
"And Mississippi becomes even more of an economic colony."
1..What the hell does that even mean?
2..I don't see anything positive for Mississippi in this sale. Well, other than for the family and stock-holders. How many hundreds will lose their jobs?
3..Speaking of PECO; The best thing that could happen would be for somebody to buy that wretched place on 55 and close it down along with the Canton kill- warehouse that employs nobody but illegals.
Tell me you live in Mississippi without telling me you live in Mississippi:
The largest public company in the state gets bought out and most of the commenters speculate about what's going to happen to a golf tournament.
6:13 - Sanderson is not the largest public company in MS. Not even close to largest one
How people find time to complain or even to opine about the sale of somebody else's business/property is completely beyond my grasp. If you don't like it, you should have made a better offer. This is still America. We still have a free enterprise system. Buy shares in the acquiring company, if it's that important to you.
So far as Wal Mart roasting chickens two days from the expiration for raw sale and selling them at a discount. I say two things (a) that's good business, and (b) thank you Jesus for my being born in this wonderful land of plenty during a time when there is too much, rather than too little, to eat.
I do love this country and I do loathe whiners and complainers. Quit whining. Do something. If you wish to waste the only life you will ever have watching morons brutalize each other on a football field, or other morons hitting little white balls with sticks, that is certainly your prerogative. I would have more respect for you if you actually were out working.
Actually, 6.13 AM is correct, if you measure size by revenue: SAFM trailing 12-mos revenues were $4.35B, which is the most of any publicly-traded company based in MS.
Eastgroup Properties has the largest market cap at $18B vs. SAFM's $4.35B.
My bad: EGP market cap is $7B, not $18B. Still higher than SAFM.
Can’t blame em, if I could I would sell out and move out before the ink dried on the bill of sale.
This was not a decision made solely (if at all) by the Sanderson family. Over 80% of SAFM is owned by institutional investors (Blackrock, Vanguard, T. Rowe Price, et al). The Sandersons don't own enough of the company to initiate or stop a sale.
It could be that Joe Frank wanted to retire, and a majority of the shareholders believed that it was in their (the shareholders) best interest to sell the business rather than take a risk on new leadership. Even in that case, it was the big investors' decision to sell.
Even if Cargill/Wayne don't continue the the PGA tourney, the Sanderson family will have enough $$ to bankroll the tournament for many years to come. Will probably work through a nonprofit sponsorship, providing big tax write-off.
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