Allens Reaches Agreement With Investor Group

Allens Inc. of Siloam Springs announced Friday an agreement to sell the company’s operations and assets to Sager Creek Acquisition Corp.

In a news release, Allens said the agreement was reached following a “robust” auction on Feb. 3.

The financial terms of the agreement were not disclosed.

An Arkansas bankruptcy judge on Jan. 7 approved Seneca Foods Corp.’s $148 million stalking horse bid to acquire the operating assets. As the stalking horse bidder, Seneca had the opportunity to match any other bids received.

Allens, a national leader in canned and frozen vegetables, filed for Chapter 11 bankruptcy in late October and announced the agreement with New York-based Seneca in December.

Sager Creek, according to the news release, is owned by investment funds managed or advised by Sankaty Advisors LLC and GB Credit Partners LLC

Sankaty Advisors is an independently managed credit affiliate of Bain Capital. GB Credit Partners is the investment management affiliate of Gordon Brothers Group.

A hearing to approve the sale is scheduled Feb. 11 in the United States Bankruptcy Court for the Western District of Arkansas.

“We are pleased with the result of the auction and believe that the selected bid maximizes the value of Allens’ assets for the benefit of our creditors,” Jonathan Hickman, chief restructuring officer of Allens, said in the news release. “Sankaty and GB Credit Partners have been investors in Allens for some time and understand the business well. We believe their winning bid demonstrates continued confidence in Allens’ brands and its people, as well as its future prospects.”