Seneca Foods Corporation has signed an agreement as a “stalking horse bidder" to purchase substantially all the operating assets of Allens, Inc., for approximately $148 million. The transaction is subject to an auction and bankruptcy court approval.
Arkansas-based Allens is a leader in canned and frozen vegetables. On Oct. 28, 2013, the company voluntarily filed petitions 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 with Seneca Foods 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 successful in its acquisition of the assets, it will fit with its 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.
