(Reuters) – Chicken producer Sanderson Farms (NASDAQ 🙂 Inc agreed on Monday to be bought for $ 4.53 billion by commodities trader Cargill Inc and investment firm Continental Grain Co at a time when meat prices have soared due to strong demand.
Demand for chicken wings and other chicken products has increased in recent months as restaurants reopened in the United States, boosting sales at Sanderson Farms and its rival. Tyson Foods Inc (NYSE :).
Cargill and Continental Grain (release check) offered $ 203 per Sanderson Farms share, representing a premium of about 11% over the stock’s closing price on Friday.
A Reuters report in June had said that Sanderson Farms had attracted the interest of buyers, including agricultural investment firm Continental, which also owns a smaller chicken processor, Wayne Farms.
Sanderson Farms shares closed at $ 182.37 on Friday, up 40% year-to-date and giving the company a market value of $ 4.07 billion. The stock is up 17% since reports emerged of Sanderson Farms exploring a sale.
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