Allen Canning Expanding Into Frozen Foods With Birds Eye Purchase

by Arkansas Business Staff  on Monday, Nov. 27, 2006 10:58 am  

Allen Canning Co. of Siloam Springs announced Monday a deal to acquire "substantially all of the operating assets" of Birds Eye Foods Inc.'s non-branded frozen vegetable business - the 80-year-old company's first foray into frozen foods.
The business processes fresh vegetables for private label customers including Wal-Mart Stores Inc., Kroger, Albertson's, Publix and Sysco. Allen will acquire plants in Brockport, Bergen and Oakfield, N.Y.; Fairwater, Wis.; and Montezuma, Ga. The purchase will add about 700 employees to Allen's payroll.
The purchase is expected to be completed in December, "subject to regulatory approvals and other closing conditions in the agreement between the parties," the companies announced in a written statement.
A purchase price was not disclosed.
"We are excited to be expanding into the frozen vegetable business. This is a natural extension of our canned vegetable business, and will allow us to better serve our existing customers and, at the same time, to build new relationships with the many customers that Birds Eye has served over the years," Allen CEO Rick Allen said in the statement.
Stephens Inc. of Little Rock served as Allen's financial advisor on the deal. Birds Eye, headquartered in Rochester, N.Y., was advised by Goldsmith Agio Helms. No terms were released.
Allen Canning ranked 17th on Arkansas Business' most recently list of the state's largest private companies with 2005 revenue of $409 million. Its 1,200 employees working in seven plants in five states produce canned vegetables under the brands Veg-All, Allen's, Butterfield, Popeye, Freshlike, Royal Prince, Sugary Sam, Sunshine, Trappey's East Texas Fair, Wagon Master and Princella.

 

 

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