|PRINT | CLOSE WINDOW|
Seneca Foods Corp. and Allens Inc. Friday morning said their merger negotiations have been terminated.
The two companies issued a joint release on July 22 announcing that they had signed a memorandum of understanding contemplating a merger of the two companies in an all-stock transaction. Completion of the transaction was subject to the negotiation and execution of a definitive agreement between the two companies, along with customary closing conditions and satisfactory completion of due diligence, the release stated.
Privately held and headquartered in Siloam Springs, Ark., Allens is a processor of canned and frozen vegetables. Founded in 1926, it ranks among the top 20 private companies in Arkansas, based on annual revenues.
At Seneca Foods' annual meeting in August, the company said it expected to complete the merger within 60 to 90 days. Once completed, Allens would become a subsidiary of Seneca Foods, officials said.
Terms of the proposed merger were not disclosed.
Seneca Foods is the nation's largest processor of canned fruits and vegetables. It ranked 30th, with 180 local employees, on the Rochester Business Journal's most recent list of manufacturers. The firm has 3,400 employees companywide.
Seneca Foods has facilities throughout the United States, including manufacturing plants and warehouses in Marion; Geneva, Ontario County; and Leicester, Livingston County. In addition to its canned-goods operations, the company also owns Seneca Flight Operations, an executive air charter service in Penn Yan, Yates County.
In May, Seneca Foods reported that its net income for the fiscal year ended March 31 was $17.7 million, or $1.45 a diluted share, down 63.5 percent from $48.4 million, or $3.96 a diluted share, the previous year. Sales fell nearly 7 percent to $1.19 billion.
During the August annual meeting, President and CEO Kraig Kayser said the lower sales and earnings resulted from a drop in selling prices, along with a difficult growing season.
(c) 2011 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or e-mail firstname.lastname@example.org.