Seneca Foods Corp. Wants to Buy Allens Inc. In $148M Deal

by Lance Turner  on Tuesday, Dec. 17, 2013 7:47 am  

Allens said it will continue to operate its business normally while the sales process continues.

$280 Million in Debt

This is the not the first time the two companies have worked toward a deal. In July 2011, Seneca and Allens attempted a merger under which Allens would have become a subsidiary of Seneca Foods. But the two parties ended merger talks in September without explanation.

Allens faces about $280 million in debt, including $178 million of secured debt and another $101.9 million in debt to unsecured creditors. In bankruptcy filings, Allens claims assets of between $100 million and $500 million and the number of creditors at between 1,000 and 5,000. A more detailed filing is due later.

Allens, founded in 1926 as Allen Canning Co., sells products under a number of brand names, including Allens, Princella, Freshlike and Royal Prince.

Seneca Foods is a processor of canned fruits and vegetables whose products are sold under the Libby's, Blue Boy, Aunt Nellie's Farm Kitchen, Stokely's, READ, Seneca Farms and Seneca labels. Seneca also produces canned and frozen vegetables sold by General Mills under the Green Giant label. Seneca stock is traded on the Nasdaq Global Stock Market.

(Mark Friedman contributed to this report.)

 

 

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