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.