M&A · Industrials · Poultry Slaughtering and Processing
Cargill and Continental Grain Company to acquire Sanderson Farms Inc
Announced Aug 9, 2021 · Closed Jul 22, 2022
Deal value$4.53BEV $4.43B
Premium30.3%To unaffected price
EV / Adj. EBITDA11.2x1.1x EV / Revenue
ConsiderationAll cash$203.00 per share
Transaction
- Acquirer
- Cargill and Continental Grain Company
- Target
- Sanderson Farms Inc (SAFM)
- Buyer type
- Strategic
- Offer price per share
- $203.00
- Enterprise value
- $4.43B
- Status
- Closed Jul 22, 2022
Deal protections
- Break fee (target pays)
- $158M · 3.5%
- Reverse fee (buyer pays)
- $300M · 6.6%
- Go-shop
- No-shop
- Financing
- Committed · BofA Securities
Advisors
- To the acquirer
- BofA Securities
- To the target
- Centerview
Sector context · Industrials
- Comparable deals
- 36 in the prior 24 months
- Premium
- 30.3% vs. 34.5% sector median
- EV / Adj. EBITDA
- 11.2x vs. 12.3x sector median
- Break fee
- 3.5% vs. 2.8% sector median
Timeline
- AnnouncedAug 9, 2021
- Proxy filedSep 3, 2021
- Definitive proxySep 13, 2021
- Shareholder voteOct 21, 2021
- ClosedJul 22, 2022
Valuation · fairness opinions
Trading comparables$163.00$205.00
Trading comparables$155.00$199.00
Trading comparables$168.00$206.00
Discounted cash flow$170.00$215.00
Offer $203.00
Implied value per Sanderson Farms Inc share by analysis, from Centerview · DCF discount rate 7.5%–8.5%.