(NAFB) – Cargill and the Continental Grain Company Monday announced a joint-venture agreement to acquire Sanderson Farms, the third-largest poultry producer in the United States.

The all-cash purchase totals $4.53 billion, or $203 per share, a 30.3 percent premium to Sanderson Farms’ share price of $155.74 on June 18, 2021. Cargill and Continental Grain will combine Sanderson Farms with Wayne Farms, a subsidiary of Continental Grain, to form a new, privately held poultry business.

In a statement, Cargill says the combination of Sanderson Farms and Wayne Farms will create a “best-in-class U.S. poultry company with a high-quality asset base, complementary operating cultures, and an industry-leading management team and workforce.”

Chairman and CEO of Cargill David MacLennan says, “Expanding our poultry offerings to the U.S. is a key enabler of our ability to meet customer and consumer demands.”

Operations will include poultry processing plants and prepared foods plants across Alabama, Arkansas, Georgia, Louisiana, Mississippi, North Carolina, and Texas.