Connors Bros., Centre Partners Rework Deal

By

SeafoodSource staff

Published on
October 16, 2008

Connors Bros. Income Fund announced yesterday that it has reworked its deal with Centre Partners Management, which agreed in late September to acquire the Canadian seafood companies' operating subsidiaries for $423 million.

If Connors Bros. cancels the deal during a 45-day "go shop" provision, which allows the company to solicit other offers and engage in negotiations, it must pay fees and expenses of up to $13.1 million plus Centre Partners' cost to enter into currency hedge agreements of up to $7.5 million.

Other terms of the deal agreed upon on Sept. 25 remain in effect.

If the transaction goes through, Connors Bros. shareholders will receive $8.22 per share in cash. The deal is subject to shareholder approval (a special meeting is scheduled for Nov. 10) and is expected to close by mid-November.

Connors Bros. shelf-stable seafood brands include Bumble Bee, Clover Leaf, Brunswick, Beach Cliff and Snow's. It also owns the Sweet Sue canned chicken brand. In mid-September, Connors Bros. unloaded its Castleberry's canned red meat business to Aunt Kitty's Foods, a subsidiary of Hanover Foods of Hanover, Pa.

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