Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, August 20, 2021

Article Excerpt

SANDERSON FARMS INC., $192.50, symbol SAFM on Nasdaq, is one of the largest poultry producers in the U.S. The company’s facilities are capable of processing 13.7 million chickens per week. Sanderson was founded in 1947 as a farm-supply store. Joe Sanderson, the grandson of founder D.R. Sanderson, has served as the company’s chief executive since 1989 and chairman since 1998. Demand for chicken breasts, wings and other products has increased as pandemic restrictions lift and restaurants reopen, boosting sales and prices. At the same time, consumers have continued spending more on groceries as many are still working from home. The cost of boneless, skinless chicken breast has more than doubled since the beginning of this year, and wing prices have hit record highs. On August 9, 2021, the company announced that it had agreed to a $203-a-share takeover offer. The cash offer is from a joint-venture between Cargill and Continental Grain. Wayne Farms, Continental Grain’s small chicken-processing subsidiary, will be combined with Sanderson to…