Seneca Foods Agrees to Acquire Allens Inc.
Seneca Foods Corp. has entered into an asset purchase agreement to acquire substantially all the operating assets of Allens Inc., which filed for Chapter 11 bankruptcy protection last October.
Subject to a working capital adjustment, plus the assumption of certain liabilities, Seneca Foods is acquiring Allens, a leader in canned and frozen vegetables since 1926, for approximately $148.0 million.
The transaction is expected to close through a court-supervised process under Section 363 of the U.S. Bankruptcy Code and is subject to an auction and Bankruptcy Court approval. 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, according to a Seneca Foods statement.
If Seneca Foods is successful in its acquisition, Allens’ line of canned vegetables will help the company broaden its dry beans and spinach offerings.
Seneca Foods’ products are sold under the Libby’s, Blue Boy, Aunt Nellie’s Farm Kitchen, Stokely’s, READ, Seneca Farms and Seneca
labels as well as through the private label and industrial markets.