On Thursday – Townsends, Inc. received final approval from the United States Bankruptcy Court for the District of Delaware to sell substantially all of its assets and transition its operating divisions to Peco Foods, Inc. and Omtron Ltd. The transactions are scheduled to close on February 25, 2011.
Peco Foods agreed to acquire Townsends’ Arkansas division for $51.4 million and the assumption of certain liabilities. Peco Foods is a fully integrated poultry processing and packaging company with operations in Alabama and Mississippi.
Omtron agreed to acquire Townsends’ North Carolina division, its corporate headquarters in Georgetown, Delaware and certain other assets for $24.9 million and the assumption of certain liabilities. Omtron is an affiliate of Agroholding Avangard, Ukraine’s largest producer of eggs and egg products for domestic and export markets.
“We are extremely satisfied with the result we were able to achieve from the auction. After carefully considering the various bids, Townsends’ management and Board of Directors determined that selling its Arkansas operating division to Peco Foods and its North Carolina operating division and corporate headquarters to Omtron presented the best scenario available for all of our stakeholders,” said Frederick B. Beilstein III, Chief Executive Officer.
Townsends is working closely with Peco and Omtron in an effort to ensure a seamless transition for Townsends’ customers, suppliers, employees, growers, brokers and others involved with the business.
On December 19, 2010, Townsends, Inc. and four wholly owned subsidiaries filed voluntary petitions for relief under chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware.
Townsends, Inc. is a third-generation, family-owned, vertically integrated poultry processer. Since its founding in 1891, it has grown to one of the leading poultry processing companies which sold 683 million pounds of poultry products in 2009. Headquartered in Georgetown, Delaware, Townsends operates facilities in Arkansas, North Carolina and Georgia. Its brands include Chef’s Select, Perfect Breast, Pristine Cuisine, Ruby Dragon, and Speedy Bird.
For access to Court documents and other general information about the Chapter 11 cases, In re Townsends, Inc., et al., case No. 10-14092, including the above referenced Orders Approving the Sale of Certain of the Debtors’ Assets, please visit www.donlinrecano.com/townsends.
Source: Donlin Recano & Company, Inc.
