Golden Enterprises, Birmingham, Ala. and Utz Quality Foods, Hanover, Pa., announced on July 18 they have entered into a definitive merger agreement. The deal is pursuant to which Utz will acquire Golden and its stockholders will receive $12.00 per share in cash.
"After conducting a review of strategic alternatives by a special committee consisting of independent members of the company's board of directors, we believe that this is an excellent transaction for our stockholders, our customers and our employees," said Mark McCutcheon, CEO of Golden Enterprises. "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. Utz is a very community oriented company and we look forward to the future that Utz and Golden Flake will create together."
A privately held snack food company, Utz was founded in 1921 by William and Salie Utz, who made potato chips out of their home in Hanover, similarly to what Frank Mosher, Mose Lischkoff and Helen Freidman did at Golden Flake in 1923. The Bashinsky family began their snack food business after buying Golden Flake in 1946, and built the company from a small local operation to the multi-state corporation it is today.
We are excited about the opportunity to partner with Golden Flake," said Dylan Lissette, CEO 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." The management teams from both companies recognize values gained from the synergies of each company. The Golden Flake product lines and production capabilities will complement the Utz product portfolio, which includes Utz, Zapps, "Dirty", Bachman, Wachusett, Snikiddy and Good Health.
Golden Flake will operate as a separate subsidiary under the leadership of its current management team, Lissette added, and the company will remain a part of Birmingham. Subject to antitrust approval and satisfaction of other customary closing conditions, the transaction is expected to close in the fourth quarter of 2016.