Harim bids $48 million for Allen Family Foods

Harim USA hopes to buy Allen Family Foods for $48 million, officials announced July 27.

The South Korea-based company bid on Allen's assets during a bankruptcy auction July 25, and details are just being released now. The cost of Allen inventory will be added to the bid price, according to a release from Reed Smith, a Wilmington-based law firm representing Harim USA.

According to the law firm, the Honorable Kevin J. Carey, a New Castle County bankruptcy judge for the United States Bankruptcy Court, indicated at a hearing July 27 that he will approve the sale, possibly by mid-August.

“This transaction will allow Harim to enter the global food market in the U.S. and to build on Allen’s rich tradition and history as a leader in the industry,” said Hong Kuk Kim, chairman of Harim Group, in the release. “We intend to combine and leverage Harim’s world-class experience and manufacturing capabilities with Allen’s great reputation for almost 100 years in the region to become one of the world leaders as a vertical integrator in the chicken market. Through our knowledge of Asian consumer preferences, we plan to expand product offerings to include premium, value-added products that can be sold throughout the United States and Asia. We also look forward to maintaining strong relationships with the local communities and customers where Allen operates, and to help establish stronger and more efficient operations in those markets.”

Harim officials said the company hopes to continue operations of Allen Family Foods and to continue to employ many employees. Allen Family Foods filed for bankruptcy protection July 9.