Bulletin
Investor Alert

The Wall Street Journal Archives | Email alerts

Aug. 8, 2021, 7:33 p.m. EDT

Chicken producer Sanderson Farms nears $4.5 billion sale

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Sanderson Farms Inc. (SAFM)
  • X
    Walmart Inc. (WMT)
  • X
    Albertsons Cos. Inc. (ACI)

or Cancel Already have a watchlist? Log In

Cara Lombardo, Jacob Bunge

Sanderson Farms Inc. is nearing a deal to sell itself for around $4.5 billion, according to people familiar with the matter, as the poultry giant rides a wave of demand for chicken products.

Sanderson /zigman2/quotes/201978364/composite SAFM -0.06% is in advanced talks with Cargill Inc. and agricultural-investment firm Continental Grain Co., which owns a smaller chicken processor, the people said. The deal could be finalized by Monday, they said.

It would value Sanderson at $203 a share, about 30% above the price before The Wall Street Journal reported in June that the company had  attracted interest from suitors  including Continental.

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. The company supplies grocery chains including Walmart Inc. /zigman2/quotes/207374728/composite WMT +0.91%  and Albertsons Cos. /zigman2/quotes/209620932/composite ACI +2.16% as well as restaurant distributors like Sysco Corp. /zigman2/quotes/205335941/composite SYY -1.87%  and U.S. Foods Holding Corp.  /zigman2/quotes/202988961/composite USFD -0.91% .

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. Tyson Foods Inc. /zigman2/quotes/201117502/composite TSN +1.41%  leads the industry with about one-fifth of the market, while Pilgrim’s Pride Corp.  /zigman2/quotes/204152423/composite PPC +0.28%  represents about 16% of the national total.

An expanded version of this report appears on WSJ.com.

Also popular on WSJ.com:

When Amazon customers leave negative reviews, some sellers hunt them down.

Companies thought they had plans for fall. Now they are scrapping them.

/zigman2/quotes/201978364/composite
US : U.S.: Nasdaq
$ 186.39
-0.11 -0.06%
Volume: 107,134
Oct. 20, 2021 4:00p
P/E Ratio
13.93
Dividend Yield
0.94%
Market Cap
$4.16 billion
Rev. per Employee
$204,315
loading...
/zigman2/quotes/207374728/composite
US : U.S.: NYSE
$ 146.00
+1.31 +0.91%
Volume: 5.82M
Oct. 20, 2021 4:00p
P/E Ratio
41.15
Dividend Yield
1.51%
Market Cap
$403.47 billion
Rev. per Employee
$243,109
loading...
/zigman2/quotes/209620932/composite
US : U.S.: NYSE
$ 28.91
+0.61 +2.16%
Volume: 1.64M
Oct. 20, 2021 4:00p
P/E Ratio
24.35
Dividend Yield
1.66%
Market Cap
$13.20 billion
Rev. per Employee
$232,301
loading...
/zigman2/quotes/205335941/composite
US : U.S.: NYSE
$ 79.82
-1.52 -1.87%
Volume: 2.74M
Oct. 20, 2021 4:00p
P/E Ratio
78.14
Dividend Yield
2.36%
Market Cap
$41.67 billion
Rev. per Employee
$884,446
loading...
/zigman2/quotes/202988961/composite
US : U.S.: NYSE
$ 36.99
-0.34 -0.91%
Volume: 1.35M
Oct. 20, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$8.31 billion
Rev. per Employee
$880,192
loading...
/zigman2/quotes/201117502/composite
US : U.S.: NYSE
$ 81.23
+1.13 +1.41%
Volume: 1.46M
Oct. 20, 2021 4:00p
P/E Ratio
12.60
Dividend Yield
2.19%
Market Cap
$28.66 billion
Rev. per Employee
$310,683
loading...
/zigman2/quotes/204152423/composite
US : U.S.: Nasdaq
$ 28.92
+0.08 +0.28%
Volume: 398,734
Oct. 20, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$7.03 billion
Rev. per Employee
$214,342
loading...

Get news alerts on Sanderson Farms Inc. — or create your own.
This Story has 0 Comments
Be the first to comment
More News In
Industries

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.