McKenna Long & Aldridge LLP Advises Townsends Inc. in the Sale of its Operating Divisions

March 7, 2011 - PRLog -- ATLANTA — McKenna Long & Aldridge LLP (MLA) announced this week that it advised client Townsends, Inc. with respect to the sale out of bankruptcy of its operating divisions to Peco Foods and Omtron. The transactions closed on February 25, 2011.

Townsends, which was founded in 1891, is a third-generation, family-owned poultry processing company. Since its founding, it has grown to be one of the leading poultry processing companies in the United States. Its brands include Chef’s Select, Perfect Breast, Pristine Cuisine, Ruby Dragon, and Speedy Bird.

Peco Foods acquired Townsends’ Arkansas division for $51.4 million and the assumption of certain liabilities. Peco Foods is a fully integrated poultry processing and packaging company with operations in Alabama and Mississippi.  

Omtron acquired Townsends’ North Carolina division, its corporate headquarters in Delaware and other specified assets for $24.9 million and the assumption of certain liabilities. Omtron is an affiliate of Agroholding Avangard, Ukraine’s largest producer of eggs and egg products for domestic and export markets.

“As a family-owned business, Townsends has been run by multiple generations for more than 120 years. This transaction was of great significance to the family and we’re glad they trusted us with the most important transaction in their history,” said Wayne N. Bradley, Corporate practice chair. Bradley led the legal advisory team with Jeffrey C. Phillips.

MLA is also serving as corporate counsel during Townsends’ bankruptcy. Among other things, MLA assisted the company with respect to the negotiation of a debtor-in-possession credit facility. The credit facility allowed Townsends to continue operations during the bankruptcy process paving the way for the Peco and Omtron transactions.

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