Seneca Foods Corp. has entered into a purchase agreement to acquire substantially all the operating assets of Allens Inc. for a purchase price of approximately $148.0 million. The transaction is subject to an auction and Bankruptcy Court approval.
On Oct. 28, 2013, Allens filed a petition for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Western District of Arkansas in Fayetteville, Ark. The purchase agreement will serve as the “stalking-horse bid” in the auction process. Allens will be seeking Bankruptcy Court approval of Seneca’s Asset Purchase Agreement as the stalking horse bid and certain bid procedures at a hearing in the near future.
If Seneca Foods is ultimately successful in its acquisition of these assets, Allens will fit with the company’s long-term growth objective to expand its line of canned vegetable offerings to include sweet potatoes, southern vegetables, and broaden its offerings of dry beans and spinach.
Press release (pdf)