Carl Buddig and Company’s affiliate to acquire assets of Rupari Food Services
US-based barbeque meat manufacturer and distributor Rupari Food Services has agreed to sell its assets to a subsidiary of Carl Buddig and Company.
Financial terms of the deal have not been disclosed by either company.
Rupari has added that the sale of its assets is in line with its business strategy, as it was seeking for an investor to take its barbeque products to the next level of growth.
Rupari chief executive officer Jack Kelly said: "We have worked diligently to overcome our capital structure issues, along with legacy legal issues the company has been struggling with for the past few years.
"After careful review of a wide range of available options, management and the board of directors determined that a sale of the vompany is in the best interests of all constituents, including our valued customers and employees."
For this transaction, Rupari Food Services and its parent company Rupari Holding have voluntarily filed petitions for reorganisation under Chapter 11 of the US Bankruptcy Code in Wilmington, Delaware.
According to Section 363 of the US Bankruptcy Code, other companies will have the option to submit competing offers for the assets.
The company anticipates that the deal will be completed within next 60 to 90 days.
Carl Buddig and Company CEO Bob Buddig said: "Acquiring the assets of Rupari makes good business sense for Buddig as we expand our portfolio of fresh, great tasting, and affordable meats.
“It gives us immediate access to an attractive pre-cooked BBQ segment and allows us to strategically grow our nationwide footprint."
Rupari noted that it has taken some significant steps towards improving the financial health of the company by reducing costs, capital expenditures and working capital needs, as well as looks forward to benefits of new ownership.