Reser’s Fine Foods to acquire Chef Solutions

Reser’s Fine Foods, a US-based producer of fresh and frozen foods, has received clearance from a Delaware bankruptcy court to buy the assets and operations of Chef Solutions, including its primary subsidiary Orval Kent Food, in a deal worth $69.2m.

Under the agreement, Reser’s and New York equity firm Mistral Capital Management will pay $36.4m in cash and $25.3m in secured debt, in addition to $7.5m in priority claims.

Mistral is one of Chef Solutions’ major shareholders.

Chef Solutions, which filed for bankruptcy in October, could not secure a bidder who was able to beat Reser’s tentative deal submitted in August.

Reser’s president and CEO Mark Reser said that the acquisition will help the company to increase its North American product portfolio.

In September, Reser’s acquired fresh-cut vegetable company Vaughan Foods for $18.25m and, following these acquisitions, the company expects to generate more than $1bn in revenues this year.