Reser's Fine Foods to acquire Vaughan Foods
July 6, 2011
by Keith Nunes
BEAVERTON, ORE. — Reser’s Fine Foods has entered into an agreement to acquire Vaughan Foods, Inc., Moore, Okla., a manufacturer of refrigerated foods, for $18.25 million in cash. The board of directors for Vaughan Foods has approved the transaction and it is now subject to the approval of Vaughan’s shareholders. The transaction is expected to be completed in the fall of 2011.
“Our company is a family-owned business with a rich history of working closely with our employees, customers and suppliers,” said Mark Reser, president and chief executive officer of Reser’s Fine Foods. “The synergies between Vaughan Foods, Inc. and Reser’s Fine Foods, Inc. will provide our valued customers with a wider range of today’s freshest foods. We look forward to partnering together as we move forward.”
Under the terms of the agreement, Vaughan will become a subsidiary of Reser’s. Immediately following the closing, Vaughan stockholders will receive $1.58 per Vaughan share, which represents a 285% premium to the Vaughan closing stock price on May 13, 2011, the last trading day prior to the execution of the term sheet, when an agreement was reached.
“We are extremely pleased with the offer from Reser’s Fine Foods,” said Herb Grimes, chairman of the board and c.e.o. of Vaughan Foods. “We believe the offer benefits our employees, their families and our investors. After 50 years of business, Vaughan Foods has found within Reser’s a company that is growing at a strong pace.”
Vaughan sells to both the food service and retail sectors. Its products consist of fresh-cut vegetables, fresh-cut fruits, salad kits, prepared salads, dips, spreads, soups, sauces and side dishes. Vaughan’s primary manufacturing facility is in Moore, Okla. Its soups and sauces are manufactured in a facility in Fort Worth, Texas.