SALEM, Ore., Aug. 22, 2019 /PRNewswire/ -- NORPAC Foods, Inc., ("NORPAC" or the "Company") a grower-owned fruit and vegetable cooperative founded in 1924, today announced that it has entered into an asset purchase agreement (the "Purchase Agreement") with Oregon Potato Company ("OPC") 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. The combined businesses will enhance the offerings and service to customers across all business channels."
Court filings as well as other information related to the restructuring are available at http://kccllc.net/norpacfoods, or by calling (877) 634-7180 (U.S./Canada) or (424) 236-7225 (International).
The Company is advised by the law firm of Tonkon Torp LLP and SierraConstellation Partners, LLC as financial advisor.
About NORPAC Foods, Inc.
Founded in 1924, NORPAC Foods is a grower-owned cooperative focused on processing frozen vegetables and fruit. Headquartered in Salem, Oregon, NORPAC is Oregon's largest fruit and vegetable processor and has three processing facilities in the Willamette Valley, along with a subsidiary Hermiston Foods, LLC in Hermiston, Oregon and a subsidiary Quincy Foods, LLC in Quincy, Washington.
About Oregon Potato Company
Oregon Potato Company (OPC) is an innovative grower and processor of potatoes, vegetables and fruits. OPC is committed to innovation, quality, customer service and cost effectiveness. OPC's processing facilities span three states with operations in Washington, Oregon and Idaho. Each location is supported by locally owned farms.
Jennifer E. Mercer
Donlin Recano Strategic Communications for NORPAC Foods, Inc.
SOURCE NORPAC Foods, Inc.