March 21, 2014
Raging Bull acquires Quantum Foods worth US$54 million
Quantum Foods, LLC, has received bankruptcy court approval of its entry into a fully-executed Asset Purchase Agreement with Raging Bull Acquisition Company LLC, which provides for a substantial increase in the value paid for the business of at least US$6.5 million over the previous stalking horse terms.
Raging Bull, a subsidiary of funds managed by Oaktree Capital Management L.P., whose portfolio of companies also includes AdvancePierre Foods, Inc., agreed to a cash purchase price of US$54 million and the assumption of up to US$30.3 million in liabilities. Closing of the sale is scheduled for April 23, 2014.
As part of the planned sale process through Chapter 11, the company will continue to solicit additional competing offers for Quantum Foods to ensure it achieves the highest and best offer for its business. The auction will take place on April 17, 2014, with court approval scheduled on April 21, 2014 and closing set for April 23, 2014.
In addition, a secured commitment for US$60 million in debtor-in-possession (DIP) financing was approved from its current lending group led by Crystal Financial LLC to fund its ongoing operations.
Quantum Foodsfiled a voluntary Chapter 11 petition in the District of Delaware on February 18, 2014 to obtain the essential financing necessary to preserve continuity, to the greatest extent possible, for its customers, employees and business partners.
With DIP financing approval, the company will continue purchasing goods and services from its suppliers and to pay suppliers in the normal course for all goods and services delivered on or after the February 18, 2014 bankruptcy filings.
Quantum Foods, LLC is a leading independent custom manufacturer and processorof innovative value-added protein products. Founded in 1990 and headquartered in Bolingbrook, Illinois, Quantum provides its customers with menu solutions, including portion controlled, ready-to-cook and value-added fully cooked protein products made from beef, poultry and pork.