As part of its efforts to expand in the southern U.S., Utz Quality Foods said it plans to purchase Golden Enterprises Inc., a snack food company based in Alabama.
Under an agreement announced Tuesday, Hanover-based Utz will pay $12 per share for Golden Enterprises, whose main product is Golden Flake potato chips. Stock in Golden had been trading around $7 per share but jumped yesterday to $11.87, according to Yahoo Finance.
After the deal, expected to close in the fourth quarter of 2016, Golden Flake will operate as a separate subsidiary under the leadership of its existing management team.
“We are excited about the opportunity to partner with Golden Flake,” Utz CEO Dylan Lissette said in a statement. “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’s leaders also welcomed the opportunities for growth created by the union of the two companies.
“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,” Golden CEO Mark McCutcheon said in a statement.
The purchase is subject to regulatory approval and other conditions. Stockholders representing a majority of Golden’s voting shares already have offered written consent to the merger, according to a news release from the company