Seneca Foods enters into a purchase agreement with Allens
Seneca Foods Corp., a Marion, N.Y.-based supplier of fruit and vegetable products under its own brands and for private labeling, said it entered into an asset purchase agreement to acquire substantially all the operating assets of Siloam Springs, Ark.-base Allens Inc. for a purchase price of approximately $148.0 million, subject to a working capital adjustment, plus the assumption of certain liabilities. Allens is a supplier of vegetable products under its own brands and for private labeling.
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, Seneca Foods said. On Oct. 28, 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 Senecas asset purchase agreement as the stalking horse bid and certain bid procedures at a hearing in the near future.