With chicken prices soaring, Sanderson Farms sold for $4.5 billion

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KCRG 09 August, 2021 - 07:36am 70 views

Who bought Sanderson Farms?

Cargill and privately held Continental Grain formed a joint venture to acquire Sanderson and will pay $203 per share in cash for a company that last year processed more than 4.8 billion pounds of meat. U.S. News & World ReportWith Chicken Prices Soaring, Sanderson Farms Sold for $4.5B

Mississippi-based Sanderson Farms sold for $4.5 billion

Clarion Ledger 09 August, 2021 - 07:57am

The companies plan to combine Sanderson Farms with Wayne Farms, a Continental Grain subsidiary, to form a new, privately held poultry business. Operations will include poultry processing plants and prepared foods plants across Alabama, Arkansas, Georgia, Louisiana, Mississippi, North Carolina, and Texas.

Sales at Sanderson Farms soared more than 34% during the second quarter compared with the same three-month period last year.

“Expanding our poultry offerings to the U.S. is a key enabler of our ability to meet customer and consumer demands," Cargill Chairman and CEO David MacLennan said in a prepared statement Monday.

Sanderson Farms, based in Laurel, Mississippi, will become a private company and its shares will no longer be traded on Nasdaq. Shares jumped about 8% before the opening bell.

The deal is expected to close by the end of this year or early next year. It still needs approval from Sanderson Farms stockholders.

Stocks making the biggest moves in the premarket: Sanderson Farms, U.S. Foods, Tyson Foods and more

CNBC 09 August, 2021 - 06:48am

Sanderson Farms (SAFM) – The poultry producer agreed to be acquired for about $4.5 billion, or $203 per share, by privately-held food producer Cargill and agriculture investment firm Continental Grain. The all-cash deal represents an 11.3% premium over Friday's closing price for Sanderson Farms. Sanderson shares surged 8.3% in the premarket.

Tesla (TSLA) – Tesla gained 1.6% in the premarket after Jefferies upgraded the stock to "buy" from "hold," based on what the firm feels is more efficient capital deployment and an improved ability by auto manufacturers to increase profit margins over time.

U.S. Foods (USFD) – The foodservice distributor's shares rallied 6.5% in the premarket after beating Street forecasts with its second-quarter profit and revenue. U.S. Foods earned 58 cents per share, 22 cents a share above estimates, helped by strong demand for its products and services as the industry recovers from the pandemic.

Tyson Foods (TSN) – The beef and poultry producer reported quarterly earnings of $2.70 per share, well above the consensus estimate of $1.62 a share. Revenue also came in above analysts' projections. Results got a boost from strong consumer demand as well as restaurant reopenings. Tyson shares rose 2.6% in premarket trading.ovid

Norwegian Cruise Line (NCLH) – A federal judge ruled that the cruise line can ask passengers for proof of Covid-19 vaccination, temporarily blocking a Florida law banning that practice.

Berkshire Hathaway (BRK.B) – Berkshire shares rose 1.2% in premarket trading after it reported a 7% increase in second-quarter earnings. Berkshire's results were helped by a rebound across its businesses including its railroad and energy companies.

Veoneer (VNE) – The auto parts maker said it would begin talks with Qualcomm (QCOM) about the chip maker's takeover bid, which topped a bid from automotive software maker Magna International (MGA) that had been previously approved by Veoneer's board. Qualcomm's bid is worth $4.6 billion, compared to the approximately $3.8 billion value of Magna's deal. Veoneer slid 3.3% in premarket trading.

Exact Sciences (EXAS) – The molecular diagnostics company has approached genetic testing firm Invitae (NVTA) about a possible merger, according to people familiar with the matter who spoke to Bloomberg. The people said the two sides are not in active talks and that a seal would likely be a low-premium, all-stock transaction. Invitae surged 7.2% in the premarket while Exact Sciences fell 2%.

Dollar Tree (DLTR) – The discount retailer was downgraded to "hold" from "buy" at Deutsche Bank, which expressed concerns about the impact of increased freight and labor costs on profit margins. Dollar Tree lost 1.5% in premarket action.

Exxon Mobil (XOM), Chevron (CVX) – These and other energy companies are under pressure as oil prices slide following new China virus measures as well as a U.N. report on the impact of climate change. Exxon fell 1.3% in premarket trading, while Chevron was down 1.6%.

Victoria's Secret (VSCO) – JPMorgan Chase initiated coverage on the women's apparel retailer with an "overweight" rating, noting its dominant market position in lingerie and nightwear and expansion opportunities in swimwear. Victoria's Secret added 1.6% in the premarket.

NetEase (NTES) – The China-based online services company surged 2.3% in premarket trading, following a Reuters report that it has delayed a planned $1 billion Hong Kong initial public offering of its Cloud Village music streaming service. People with direct knowledge of the matter said the delay was due to volatile trading in China's major tech companies.

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