Poultry processorTownsends, Inc., Georgetown, Del., said it 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 toPeco Foods, Inc. andOmtron Ltd. Officials said they expect to close the transactions on February 25, 2011.
Peco Foods, Tuscaloosa, Ala., 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, Del., and certain other assets for $24.9 million and the assumption of certain liabilities. Omtron is an affiliate ofAgroholding 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, Townsends CEO.
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 reportedly sold 683 million pounds of poultry products in 2009. Its brands include Chef’s Select, Perfect Breast, Pristine Cuisine, Ruby Dragon, and Speedy Bird.