Seneca Foods Offers $148M to Buy Allens
MARION, N.Y. (AP) — Seneca Foods has offered to buy Allens Inc., a vegetable canner that filed for bankruptcy protection in October, for about $148 million.
Allens sells vegetables under the Allens, Princella, Freshlike and Royal Prince labels. Seneca processes canned fruits and vegetables.
Seneca Foods Corp. said Tuesday that the purchase price is subject to a working capital adjustment, plus the assumption of certain liabilities. Its offer is considered a "stalking horse" bid, which sets the floor for an auction process that lets competitors make better offers.
The transaction is subject to bankruptcy court approval. The case is being handled by the U.S. Bankruptcy Court in Fayetteville, Ark.
Seneca, based in Marion, N.Y., said that if it is successful in the acquisition, the deal will help broaden its line of canned vegetable offerings to include sweet potatoes and southern vegetables and expand its offerings of dry beans and spinach.
Seneca Foods shares rose $1.43, or 4.8 percent, to $31.47 in morning trading Tuesday. It shares have slipped a little more than 1 percent so far in 2013.