SALEM, OR - NORPAC Foods, a grower-owned produce cooperative founded in 1924, has announced it is forming an asset purchase agreement with Oregon Potato Company (OPC) under which OPC will acquire nearly all of NORPAC’s assets. To facilitate a free and clear sale, NORPAC has initiated proceedings under chapter 11 of the United States Bankruptcy Code.
"NORPAC is pleased to have found a partner who shares our vision and will ensure the best possible future for our growers, employees, customers, and partners," said Shawn Campbell, CEO of NORPAC. "Our business operations will continue as normal through the bankruptcy process. Our 2,700 employees will continue to receive their wages and benefits, our vendors and suppliers will be paid in the ordinary course of business going forward, and our customers can continue to rely on us for unparalleled produce and products thanks to our family of farmers."
According to a press release, the transaction is expected to be swift, closing within 60 to 90 days, during which time current NORPAC management will continue to oversee operations supported by debtor-in-possession (DIP) financing provided by CoBank. The transaction is subject to customary closing conditions, federal regulatory, and Bankruptcy Court approvals.
"We intend to work as quickly as possible through the forthcoming process,” commented Frank Tiegs, President of Oregon Potato Company. “We are excited about bringing the growers, employees, partners, and various assets of NORPAC together with our family of companies. The combined businesses will enhance the offerings and service to customers across all business channels."
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