Sam Kane Beef Processors LLC announced that JDH Capital Co. (JDH) is the winner of its court-approved bankruptcy auction after submitting a winning bid of $28 million.
Under the terms of the transaction, JDH intends to acquire substantially all of the operating assets of Kane Beef. JDH said it plans to make meaningful investments in the Corpus Christi, Texas, processing plant and will continue to operate the business as a going concern.
“I am pleased with the results of the process and the positive outcome I believe it will have on Kane Beef’s employees and the Corpus Christi community as a whole,” stated Richard Schmidt, court-appointed receiver to Kane Beef. “It is my opinion that this transaction will maximize value for all constituencies while preserving the legacy of such an important south Texas institution. I have great confidence in JDH’s vision for Sam Kane.”
Ryan Connelly, managing director of JDH, said, “The auction of the Kane Beef property represents a new beginning. While there have been recent challenges with the business, our potential investment is an indication of the opportunity we see to turn things around.”
Connelly said JDH will be moving ahead in the coming weeks to fully assess the business and formulate a long-term plan for revitalization.
“Pending closing and receipt of all required permits, our goal is to resume operations as soon as practicable and get employees back to work,” he said.
Sam Kane Beef management is working with the new buyers to begin operations as soon as feasibly possible.
The company recently stated on its Facebook page that it is working on closing the sale and that it will have an update for its 725 employees by Feb. 23.