Allens and Seneca Foods End Merger Talks

by Arkansas Business Staff  on Friday, Sep. 2, 2011 9:37 am  

Seneca Foods Corp. of Marion, N.Y., and Allens Inc. of Siloam Springs have ended merger negotiations, according to the Rochester Business Journal in Rochester, N.Y.

The two companies announced July 22 that they had signed a memorandum of understanding to merge in an all-stock transaction. The companies would not disclose specific terms of the deal.

Seneca Foods had said it expected to complete the merger within 60 to 90 days. Once completed, Allens would have become a subsidiary of Seneca Foods, the newspaper said.

Seneca did not provide details on why the merger talks ended.

Allens is a private, family-owned and operated company that grows and packs both frozen and canned vegetables. Earlier this year, it was ranked No. 16 on Arkansas Business' annual list of the largest 75 private companies in the state, with $672.0 million in 2010 revenue.

The company, which has 2,400 employees, sells products under multiple brand names throughout the world, and has manufacturing facilities in Arkansas, Georgia, New York, North Carolina, Texas and Wisconsin. Its brands include Popeye Spinach and Freshlike.

Seneca Foods is a processor of canned fruits and vegetables with manufacturing plants throughout the United States. Its products are sold under the Libby’s, Aunt Nellie’s Farm Kitchen, Stokely’s, READ, Seneca Farms and Seneca labels.

In its most recent quarter, Seneca (Nasdaq: %%SENEA%%, %%SENEB%%) reported a $7.9 million loss on revenue of $259 million.



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