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Bumble Bee Parent requests court approval of asset sale procedures
By Caroline Salls
Pittsburgh, Nov. 22 – Bumble Bee Parent, Inc. requested court approval of the bid procedures for the proposed sale of substantially all of its assets, according to a motion filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.
As previously reported, Bumble Bee announced that it entered into an asset purchase agreement with affiliates of FCF Co., Ltd., which has agreed to acquire the company’s assets for $925 million. The bid procedures motion said FCF has agreed to pay up to $930.6 million in its stalking horse bid.
The motion said FCF originally agreed to acquire all of the company assets at a total implied enterprise value of roughly $925 million. That amount was subsequently increased to $925.6 million and may be increased by up to an additional $5 million based on increases in the amount of the company’s funded debt.
The purchase price will be funded with $275 million of cash and up to $638.6 million of new senior secured financing, which will take the form of rolled-over term loan debt, as well as the assumption of $17 million of outstanding Department of Justice fines.
If FCF is not the winning bidder for the assets, Bumble Bee will pay it a $27.75 million break-up fee and reimburse up to $2.5 million of its sale-related expenses.
Competing bids are due by 5 p.m. ET on Jan. 2 and must have a monetary value equal to or greater than the stalking horse bid, plus the break-up fee and expense reimbursement and a $1 million overbid amount.
An auction will be held on Jan. 10, if necessary. Bids at auction must be made in minimum increments of $500,000.
Bumble Bee is a San Diego-based shelf-stable seafood supplier. The company filed bankruptcy on Nov. 21 under Chapter 11 case number 19-12502.
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