Wayne Farms, a subsidiary of Continental Grain Company on October 17 completed the sale of its fresh poultry processing complex in Laurel, Mississippi, to Amick Farms.
The complex includes live production, hatchery, feed mill, manufacturing and production facilities. The divestiture is a key milestone towards completing the previously announced transaction which will combine Wayne Farms and Sanderson Farms under the joint ownership and control of Cargill and Continental Grain.
Clint Rivers, president and CEO of Wayne Farms, said: "We've had a very long and positive relationship with the Laurel community, and we're glad we've been able to reach an agreement with a solid operator like Amick Farms who shares our values and will continue that community partnership. The decision to sell the Laurel facility was not easy for Wayne Farms, but this is an important step in completing the proposed transaction with Sanderson Farms. We are thankful for Amick Farms' commitment to the Laurel workers and the community, and we're confident the plant will continue to operate and thrive under their ownership."
As previously announced on August 9, Cargill, Continental Grain and Sanderson Farms reached a definitive agreement for a joint venture between Cargill and Continental Grain to acquire Sanderson Farms and combine it with Wayne Farms to form a new, privately held U.S. poultry business with a high-quality asset base, complementary operating cultures, and an industry-leading management team and workforce. On October 21, Sanderson Farms stockholders approved the transaction during a special meeting of stockholders, completing another key milestone in the closing process. The transaction is expected to close by the end of 2021 or early 2022, subject to regulatory approvals, and other customary closing conditions.
Based in Batesburg, South Carolina, Amick Farms currently operates two other vertically integrated facilities in South Carolina and Maryland, employing approximately 3,000 employees. Financial terms of the sale were not disclosed.
William Blair served as financial advisor and Boles Holmes White, LLC served as legal advisor to Wayne Farms in this transaction. Nexsen Pruet served as legal advisor to Amick Farms.
