WASHINGTON — Utz Quality Foods, whose chips and salty snacks are well-known to mid-Atlantic consumers, is paying $135 million to acquire Birmingham, Alabama-based Golden Enterprises Inc., the makers of the Golden Flake line of chips, cheese curls and popcorn.
The acquisition price, at $12 per share, is a 60 percent premium over Golden Enterprises’ market value based on its stock close Monday, sending its stock sharply higher Tuesday.
Hanover, Pennsylvania-based Utz Quality Foods was founded in 1921 by William and Salie Utz, who began making potato chips in their Hanover home. Golden Flake was founded in 1923.
“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,” Utz chief executive Dylan Lissette said.
Golden Enterprises shareholders have approved the merger, though the company has three days to consider any competing offers.
Utz said it expects the deal to close in the fourth quarter of 2016.
