NORPAC Foods, Inc., a grower-owned fruit and vegetable cooperative founded in 1924, announced that it has entered into an asset purchase agreement with Oregon Potato Company under which OPC will acquire substantially all of the Company's assets. NORPAC has initiated proceedings under chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Oregon to facilitate a free and clear sale.
"NORPAC is pleased to have found a partner who shares our vision and will ensure the best possible future for our growers, employees, customers, and partners," said Shawn Campbell, CEO. "Our business operations will continue as normal through the bankruptcy process. Our 2,700 employees will continue to receive their wages and benefits, our vendors and suppliers will be paid in the ordinary course of business going forward, and our customers can continue to rely on us for unparalleled produce and products thanks to our family of farmers."
NORPAC anticipates the transaction will move swiftly and close within 60-90 days. During that time current management will continue to lead operations supported by debtor-in-possession (DIP) financing provided by CoBank. The transaction is subject to customary closing conditions, federal regulatory and Bankruptcy Court approvals.
Frank Tiegs, President of Oregon Potato Company commented, "We intend to work as quickly as possible through the forthcoming process. We are excited about bringing the growers, employees, partners and various assets of NORPAC together with our family of companies."
For more information:
Jennifer E. Mercer
NORPAC Foods, Inc.
Tel: +1 818-802-5199
Email: [email protected]
https://norpac.com/
