Hanover, Pennsylvania-based Utz Quality Foods announced plans yesterday to acquire Golden Enterprises, Inc., a snack food manufacturer based in Birmingham, Alabama. The company’s stockholders will receive $12 per share in cash, an estimated 71 percent premium over the company’s 30-day trading average closing of $7 per share.
Golden Flake Snack Foods, Inc., a wholly owned subsidiary of Golden Enterprices, Inc. (GLDC), manufactures snack food products. The company operates two manufacturing facilities — one in Birmingham, Alabama and the other in Ocala, Fla. It opened in 1923 and currently distributes products throughout the south.
"We are excited about the opportunity to partner with Golden Flake" said Dylan Lissette, Chief Executive Officer of Utz. "The two companies 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."
"This merger will allow the Golden Flake brand to continue to grow in our core southeastern markets, while expanding the product selections for our consumers," said Mark McCutcheon, Chief Executive Officer of Golden Enterprises, Inc. Utz is a very community oriented company and we look forward to the future that Utz and Golden Flake will create together."
Following antitrust approval and other closing conditions, executives expect the merger will finalize in the fourth quarter of 2016. Golden Flake will operate as a separate subsidiary under the leadership of its current management team.