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Potato chip maker Utz to acquire Golden Enterprises for $135m

FBR Staff Writer Published 20 July 2016

Potato chip and snack food company Utz Quality Foods has entered into an agreement to acquire Golden Enterprises for $135m.

The acquisition price represents a premium of nearly 71% percent over Golden Enterprises' 30-day average closing trading price of $7.

Golden Enterprises chief executive officer Mark McCutcheon said: “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."

Founded in 1921, Utz is a privately held snack food company that began making potato chips out of founders’ home in Hanover.

Following the acquisition, the Golden Flake product lines and production capabilities are expected to strengthen Utz product portfolio, which includes Utz, Zapps, "Dirty", Bachman, Wachusett, Snikiddy and Good Health.

However, the transaction is subject to antitrust approval and satisfaction of other customary closing conditions.

It is expected to be completed in the fourth quarter of this year.

While Sandler O'Neill acted as financial advisor to Utz on the transaction, Golden Enterprises was advised by North Point Advisors.

Utz chief executive officer Dylan Lissette said: “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."

Golden currently employs nearly 700 people at its plants in Birmingham and Ocala, Florida, US.

Lissette was quoted by philly.com as saying: “It is the largest acquisition we have done.”