Golden Enterprises And Utz Quality Foods Strike Definitive Merger Agreement

Golden Enterprises, Inc. GLDC and Utz Quality Foods, Inc. disclosed that they reached a definitive merger deal on July 18 following which Utz would acquire the Company. Its shareholders would get $12.00 per share in cash. The offer price represented a premium of about 71 percent from its 30-day average closing trading price of $7.00.

Following the news, the stock surged more than 58 percent. The company expects the transaction to close in the fourth quarter of the current year subject to antitrust and other regulators approval.

Golden Enterprises said that after the merger agreement execution, its stockholders representing a majority of the voting shares delivered a written consent approving, as well as adopting the merger agreement. The company added that the merger deal included a three-day period in which its Board could consider an unsolicited alternative proposal that it concludes in good faith.

CEO Mark McCutcheon commented about the merger, saying,"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."

He added, "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."

Similarly, Utz CEO, Dylan Lissette, said, "We are excited about the opportunity to partner with Golden Flake. 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."

Following the news, the stock traded 58.56 percent at time of writing .