SeaSpecialties to sell Barnacle Seafood division
Files voluntary petitions in the U.S. Bankruptcy Court in Fort Lauderdale together with a motion seeking bankruptcy court approval of the sale.
05/09/05 SeaSpecialties Inc. has announced that the company has reached an agreement to sell the assets of its Barnacle Seafood division to Meriturn Partners, LLC for a purchase price of $3.5 million. The company said it had filed voluntary petitions in the U.S. Bankruptcy Court in Fort Lauderdale together with a motion seeking bankruptcy court approval of the sale.
The company expects to announce a buyer for its Homarus/Marshall Smoked Fish, Inc. unit in the near future and will file a similar motion to implement that sale.
SeaSpecialties said that it has obtained the consent and support of its lender respecting the use of cash collateral that will ensure that the business will continue to operate in the ordinary course after today's filing and through the sales process. The lender has consented to the company's continued use of its cash collateral during that process; the company does not anticipate the need for additional borrowings.
Barnacle Seafood is a specialty processor and distributor of a full line of fresh and frozen seafood products sold to the South Florida and Caribbean markets. With 2004 pro-forma sales of $44 million, the company believes it is the largest seafood-only processor and distributor in South Florida. Barnacle operates a modern seafood facility in Fort Lauderdale that employs 70.
SeaSpecialties has agreed to sell the assets of Barnacle to an affiliate of Meriturn Partners, a private equity investment firm, which will continue to operate the business from its existing facilities. The business will continue to be managed by Jim Ruos, who joined Barnacle six months ago with more than 20 years of experience in the seafood business. As required by the Bankruptcy Code, the Barnacle sale is subject to a competitive process whereby higher and better offers can be considered according to procedures to be approved by the Court.