Utz to purchase Golden Flake
Potato chip and snack food manufacturer Utz Quality Foods, Inc. will acquire Birmingham, Alabama-based Golden Enterprises, Inc. in a deal worth about $141 million.
“We believe that this is an excellent transaction for our stockholders, our customers and our employees," says Mark McCutcheon, CEO of Golden Enterprises, which manufacturers the region’s iconic Golden Flake brand. “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."
The Pennsylvania-based Utz — which also includes the Zapp’s, Bachman and Dirty brands — is a privately held snack food company, founded in 1921. Upon closing of the transaction, Golden Flake will operate as a separate subsidiary under the leadership of its current management team.
“We are excited about the opportunity to partner with Golden Flake,” says Dylan Lissette, CEO 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.”
The transaction is expected to close in the fourth quarter of 2016.