In a press release, FCF Co. has confirmed it entered into a purchase agreement for financially beleaguered, San Diego, California, U.S.A.-based tuna firm Bumble Bee Foods.
The agreement will allow FCF to "acquire substantially all of the company’s assets and to ensure that the 120-year old provider of healthy and nutritious shelf-stable seafood continues to serve its valued customers,” according to the release.
In its statement, the Taiwan-based tuna-fishing company outlined its actions to enter a stalking-horse bid, which positions it as the frontrunner to acquire Bumble Bee. FCF expects Bumble Bee to conduct a court-supervised auction for its assets in January 2020, with bidding starting at FCF’s offer of USD 925 million (EUR 836 million), as reported by Bloomberg.
“If successful, FCF intends to close the acquisition during the first quarter of 2020,” FCF said in its release.
On Thursday, 21 November, Bumble Bee filed for chapter 11 bankruptcy protection in the U.S., as well as under the Companies' Creditors Arrangement Act in Canada. In its filing, Bumble Bee detailed its attainment of a debtor-in-possession term loan facility of USD 80 million (EUR 72.4 million) and a debtor-in-possession asset-based revolving credit facility of 200 million (EUR 180.9 million). According to FCF, those loans should give Bumble Bee enough cash to continue operations through the acquisition.
“Bumble Bee has received new financing commitments from its existing lenders that will provide sufficient liquidity to fund the business through the closing of the sale,” FCF said.
In a statement, FCF President Max Chou said the acquisition stems from the two companies’ longstanding relationship.
“It has been a challenging time, but we believe strongly in the company, the executive leadership team, the employees, customer partners and vendors,” Chou said. “FCF values our 30-year business relationship, whereby we have consistently supplied Bumble Bee with sustainable and socially-responsible fishery products. We have undertaken a thorough and prudent review of the initiative and are excited to help position Bumble Bee for long-term success."
