Utz Foods Acquires Golden Enterprises for USD135m

Utz Quality Foods Inc., the family-owned Hanover, Pennsylvania-based potato-chip and snack-food company, has agreed to pay about USD135m, or USD12 a share, for Golden Enterprises Inc., the publicly-traded Birmingham, Alabama-based maker of Golden Flake chips and other snack products.

This price represents a premium of approximately 71% over the company’s 30-day average closing trading price of USD7. “We believe that this is an excellent transaction for our stockholders, our customers and our employees,” said Mark McCutcheon, chief executive officer of the company. “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.”

Utz Quality Foods, Inc. is a privately-held snack food company, founded in 1921 by William and Salie Utz. They began making potato chips out of their home in Hanover, in much the same way that Frank Mosher, Mose Lischkoff and Helen Freidman began Golden Flake in 1923. The Bashinsky family began their snack food legacy when they purchased the business in 1946. Under their tenure, the company grew from a small, local operation to the multi-state corporation it is today.

“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.” Both management teams recognize the value of the “plus one strength” gained from the synergies of each company. The Golden Flake product lines and production capabilities will complement the Utz product portfolio, which includes Utz, Zapps, “Dirty”, Bachman, Wachusett, Snikiddy and Good Health.

Golden Flake will operate as a separate subsidiary under the leadership of its current management team and continue to be an important part of Birmingham as “The South’s Original Potato Chip!”.