HANOVER, PA. — Utz Quality Foods, Inc. has entered into an agreement to acquire Golden Enterprises, Inc., the Birmingham, Ala.-based manufacturer and distributor of Golden Flake Snack Foods, for about $146 million. Golden Enterprises share price jumped following the news, climbing to as high as $11.95 per share in mid-morning trading on July 19 after closing at $7.50 on July 18.
|Dylan Lissette, c.e.o. of Utz|
“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.”
Utz Quality Foods is a privately-held snack food company offering products under the Utz, Zapps, “Dirty,” Bachman, Wachusett, Snikiddy and Good Health brands. The acquisition of Golden Flake will bring its product portfolio into the fold, including potato chips, pork skins, popcorn, cheese puffs and other snack foods. Once acquired, Golden Flake will operate as a separate subsidiary under the leadership of its current management.
|Mark McCutcheon, c.e.o. of Golden Enterprises|
“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, c.e.o. 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.”
In the 53 weeks ended June 3, Golden Enterprises had net income of $3,184,803, equal to 28c per share on the common stock, which compared with $1,773,841, or 15c per share, in the same period a year earlier. Net sales in the 53 weeks ended June 3 were $135,870,580, up from $131,724,721.As of March 31, Golden Enterprises had 11,291,757 common shares outstanding.