Kahiki Foods to merge with Abarta
May 24, 2007
by FoodBusinessNews.net Staff
GAHANNA, OHIO — Kahiki Foods Inc. has entered a merger agreement with Delabarta Inc. and its subsidiary, GTG Foods Inc. Delabarta is a subsidiary of Abarta Inc.
As part of the transaction, GTG Foods Inc. will merge into Kahiki Foods, with Kahiki being the surviving corporation. Once completed, Kahiki Foods will continue operations as a privately-held company.
"The merger is a consummation of mutual values, culture and strategic vision — the building blocks of a world-class business," said Alan Hoover, president and chief executive officer of Kahiki Foods. "Abarta brings to us financial strength, operational excellence and competitive muscle."
When the merger is complete, every outstanding preferred share will be converted into the right to receive $3.288 in cash, and each outstanding common share will be converted into the right to receive $2.163 in cash.
Shareholders owning about 56% of Kahiki Food’s voting power have agreed to vote in favor of the merger, and a special shareholders meeting will be held on June 22 to consider and vote on the merger.