Bumble Bee Foods agrees to sell assets for $925m

Shelf-stable seafood company Bumble Bee Foods has signed an agreement to sell its assets to affiliates of FCF in a deal valued at $925m.

The company has also initiated proceedings under chapter 11 of the US Bankruptcy Code in the District of Delaware, to facilitate the sale and reduce its debt burden.

Bumble Bee Foods president and CEO Jan Tharp said: “It’s been a challenging time for our company but today’s actions allow us to move forward with minimal disruption to our day-to-day operations.

“We have an experienced leadership team in place and plan to transform our business in bold and innovative ways that will build a legacy worthy of our proud 120-year-old history.”

New financing commitments provided by Bumble Bee’s existing lenders will enable the company to fund the business until its closing date. The company proposes to simultaneously file bid procedures and sale motion along with the purchase agreement.

FCF has agreed to act as the ‘stalking horse’ purchaser for the sale process. However, FCF bids will be subject to a court-supervised auction process, which has been designed to achieve the best offer for the company.

As part of the transaction, Connors Bros. Clover Leaf Seafoods Company (CBCLS), the Canadian affiliate of Bumble Bee, will start proceedings under the Companies’ Creditors Arrangement Act (CCAA).

Tharp added: “It is our clear intent that all US and Canadian operations continue uninterrupted.

“Employees will get paid, our customer partners can count on us to continue delivering outstanding brands and services, and vendors will be paid in the ordinary course of business.”