US-based Oregon Potato Company (OPC) has entered an agreement to acquire all of Norpac Foods’ assets for an undisclosed sum.
Norpac Foods is a grower-owned cooperative and is engaged in the processing of frozen vegetables and fruits processing.
Under chapter 11 of the US Bankruptcy Code in the Bankruptcy Court for the District of Oregon, the company has initiated proceedings for a free and clear sale.
Norpac Foods CEO Shawn Campbell said: “Norpac is pleased to have found a partner who shares our vision and will ensure the best possible future for our growers, employees, customers, and partners.
“Our business operations will continue as normal through the bankruptcy process. Our 2,700 employees will continue to receive their wages and benefits, our vendors and suppliers will be paid in the ordinary course of business going forward, and our customers can continue to rely on us for unparalleled produce and products thanks to our family of farmers.”
Completion of the deal is subject to customary closing conditions, federal regulatory and bankruptcy court approvals.
Norpac expects the transaction to be completed within 60-90 days.
Until the completion of the deal, the existing management team will continue to lead operations and will be financially backed by debtor-in-possession (DIP) CoBank.
Oregon Potato Company president Frank Tiegs said: “We intend to work as quickly as possible through the forthcoming process.
“We are excited about bringing the growers, employees, partners and various assets of Norpac together with our family of companies. The combined businesses will enhance the offerings and service to customers across all business channels.”
Norpac Foods operates three facilities in the Willamette Valley, along with its subsidiaries Hermiston Foods in Hermiston, Oregon, and Quincy Foods in Quincy, Washington.
