Shares of Vaughan Foods, Inc. (OTC:FOOD) soared 280% to $1.52 on Thursday after the company has been agreed to be acquired by Reser’s Fine Foods, Inc. for $18.25 million or $1.58 a share.
All the agreed amount is payable in cash. The deal is pending to be approved by shareholders as the Vaughan’s Board of Directors has unanimously approved the transaction.
As per the agreement, Vaughan will continue with its business as wholly owned subsidiary of Reser’s. Once shareholders approved the deal, they would get $1.58 a share in cash.
The agreed amount signifying a hefty premium of 285% to the Vaughan closing stock price on May 13, 2011, the last trading day prior to the execution of the Term Sheet, when agreement was reached regarding the transaction consideration.
Herb Grimes, chairman of the board and CEO of Vaughan Foods, said, “We are extremely pleased with the offer from Reser’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 Reser’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.”
Vaughan Foods, Inc. is an integrated processor and distributor of refrigerated foods. It distributes fresh-cut produce items along with a range of refrigerated prepared foods. It sells to both food service and retail sectors. Its products consist of fresh-cut vegetables, fresh-cut fruits, salad kits, prepared salads, dips, spreads, soups, sauces and side dishes.
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