The US$30m acquisition of Archway Cookies by US food group Lance has been approved by a US bankruptcy court.
The transaction is expected to close no later than 15 December, the company said in a statement yesterday (3 December).
In October, Archway & Mother’s Cookie Co. filed for Chapter 11 bankruptcy protection, citing rising materials and fuel costs as a factor in the bankruptcy filing.
The company, which is owned by private equity firm Catterton Partners, said it planned to end its US operations.
Lance had originally made a bid for both the Mother’s Cookie and Archway businesses. However, Kellogg has since announced that it expects to close its acquisition of the Mother’s Cake and Cookie trademarks and recipes today (4 December).
Commenting on the deal, Lance president and CEO David Singer said Lance would reopen Archway’s Ohio manufacturing facility.
Lance will produce Archway cookies at the site, which will also provide additional capacity to support growth in Lance’s existing business, Singer said.
“Archway is an excellent addition to our growing portfolio of consumer preferred niche brands,” Singer added.
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