US: Seneca "stalking horse" bidder for Allens

By Katy Askew | 18 December 2013

US canned food group Seneca Foods has emerged as the stalking horse bidder for Allens after the Popeye Spinach maker filed for bankruptcy in October this year.

Seneca has entered into an asset purchase agreement to acquire Allens for US$148m. The purchase price is subject to working capital adjustments and the assumption of certain liabilities.

The deal is subject to a competitive auction process. Allens will seek bankruptcy court approval for the agreement at a hearing in the "near future".

Seneca and Allens held talks over a potential merger in 2011, although the deal was subsequently abandoned

Show the press release

Seneca Foods Enters into a Purchase Agreement with Allens
MARION, N.Y., Dec. 17, 2013 /PRNewswire/ -- Seneca Foods Corporation (the "Company") (NASDAQ: SENEA, SENEB) today confirmed that it has entered into an Asset Purchase Agreement (the "Purchase Agreement") to acquire substantially all the operating assets of Allens, Inc. ("Allens") for a purchase price of approximately $148.0 million, subject to a working capital adjustment, plus the assumption of certain liabilities.

The transaction is expected to be consummated through a court-supervised process under Section 363 of the U.S. Bankruptcy Code and is subject to an auction and Bankruptcy Court approval. On October 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, Arkansas. The Purchase Agreement with the Company 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 the Company is ultimately successful in its acquisition of these assets, they 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.

Miller Buckfire & Co., LLC, a Stifel Company, is serving as the Company's investment banker. Jaeckle Fleischmann & Mugel, LLP and Wright, Lindsey & Jennings LLP are serving as legal advisors.

Original source: Seneca Foods

Sectors: Canned food, Mergers & acquisitions

Companies: Seneca Foods

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