Reserâ€™s to Buy Vaughan Foods for $18.25m
As per the deal, Vaughan stockholders will receive $1.58 per share, which represents a 285 percent premium to the company's closing stock price on May 13, 2011.
Vaughanâ€™s board of directors has unanimously approved the transaction, which is subject to approval from its stockholders and other closing conditions.
Herb Grimes, chairman of the board and CEO of Vaughan Foods, said, â€œWe are extremely pleased with the offer from Reserâ€™s Fine Foods. We believe the offer benefits our employees, their families and our investors. After 50 years of business, Vaughan Foods has found within Reserâ€™s a company that is growing at a strong pace. It is a company that will respect our legacy as a family-operated company that delivers the freshest products throughout the nation.â€
Mark Reser, president and CEO of Reserâ€™s Fine Foods, said: â€œOur company is a family-owned business with a rich history of working closely with our employees, customers and suppliers. The synergies between Vaughan Foods and Reserâ€™s Fine Foods will provide our valued customers with a wider range of todayâ€™s freshest foods. We look forward to partnering together as we move forward."
Vaughan Foods' products consist of fresh-cut vegetables, fresh-cut fruits, salad kits, prepared salads, dips, spreads, soups, sauces and side dishes. Its primary manufacturing facility is in Moore, Oklahoma. Its soups and sauces are manufactured in Fort Worth, Texas.
In March 2011, Reserâ€™s Fine Foods has introduced new protein-based deli salads: chicken, ham, seafood, and tuna recipes.
Will the purchase benefit Reserâ€™s Fine Foods?
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