Townsends wins approval to sell assets for $76.4 million
Peco Foods, Omitron are purchasers
Townsends Inc., which held an auction on Feb. 15 to sell off its assets after filing for Chapter 11 bankruptcy in December, has been awarded court approval to complete sales to Peco Foods Inc. and Omitron Ltd. for about $76.4 million.
According to Derek C. Abbott, a lawyer for Townsends, Peco will buy Townsends’ Batesville, Ark., operations for about $51.4 million and Omitron will acquire the remaining assets for about $24.9 million. “We are pleased to add the Townsend Foods complex in northeast Arkansas to our operations,” said Peco CEO Mark Hickman. “The Batesville plant is very similar to our complex in Sebastopol, Miss., and will fit seamlessly with our overall market strategy and growth plan.”
The company auction, according to Abbott, was considerably more successful than Townsends had planned for. The sales should be completed by Feb. 25.