Food makers Golden Enterprises and Utz Quality Foods have entered into a merger agreement, in a deal aimed at consolidating their presence in the country.
Utz is offering $12.00 per share in cash, a premium of around 71% over the 30-day average closing trading price. Golden Enterprises is recommending the offer, terming it “an excellent transaction for our stockholders, our customers and our employees”.
Privately-held Utz owns snack brands such as Utz, Zapps, “Dirty”, Bachman, Wachusett, Snikiddy and Good Health. Golden Enterprises, meanwhile, produces the Golden Flake brand. The two sides said they are “very similar both in mission and values, and each has a team of dedicated associates. Golden Flake’s product line, market coverage, and manufacturing facilities blend well with Utz’s desire to expand and grow our markets in the south.”
Golden Flake will operate as a separate subsidiary under the leadership of its current management team. The deal, subject to regulatory approval, is expected to close in the fourth quarter of 2016.