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Sanderson Farms: An M&A Opportunity

Oct. 03, 2021 9:48 AM ETSanderson Farms, Inc. (SAFM)9 Comments
Philip MacKellar profile picture
Philip MacKellar


  • Sanderson Farms is being acquired by Cargill and Continental Grain.
  • The terms look straightforward, but it carries certain antitrust risks.
  • The spread between today’s price and the $203 close represents a decent return.
  • If the deal fails, Sanderson Farms should do well as a standalone investment.
  • Investors beware: investing in mergers like this is inherently risky.

Indoors chicken farm, chicken feeding, farm for growing broiler chickens

davit85/iStock via Getty Images


Sanderson Farms (NASDAQ:SAFM) is being acquired by Cargill and Continental Grain Company (Conti) for $203 per share cash. The deal was announced in August, is expected to close later this year or

This article was written by

Philip MacKellar profile picture
Philip MacKellar is an analyst, portfolio manager, and investor at Contra the Heard Investment Newsletter. He has been with the company since 2011 and has been investing since 2004. The newsletter’s primary focus is on contrarian and value-oriented investment opportunities traded in the United States and Canada. In addition, Philip sometimes engages in M&A, other special situations, and holds bonds, preferred shares, and convertible securities. Contra the Heard is a Toronto based company and was founded in 1995. Philip also blogs about personal finance topics on his own website called mymoneymoves.ca in his free time. You can also follow Philip at the Globe & Mail, on Twitter @Rallekcam, and catch him on YouTube at Contra the Heard.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of SAFM, FOE, MRLN, SNNY, SJR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Disclaimer: The opinions expressed - imperfect and often subject to change - are not intended nor should be taken as advice or guidance. The information enclosed in this article is deemed to be accurate and reliable, but is not guaranteed by the author.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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