Snyder's of Hanover's plans to acquire Utz Quality Foods in Hanover fell through, the companies announced Wednesday, when Utz decided late last week that the Federal Trade Commission's approval process had become too costly.

The FTC last week requested more information from the snack food companies, which it needed before it could approve the merger, according to a prepared statement the companies released Wednesday.

Utz then decided to withdraw from the process, according to the company, because gathering the required data and paying any resulting legal fees necessary to comply with the new request would have "put a strain" on the company.

Snyder's, however, was prepared to proceed with the project, said Carl E. Lee Jr., its president and CEO.

"We had all the resources and all the plans in place to continue to move forward," Lee said. "...We had already started complying with the information that was required."

Lee continued: "We thought proceeding was the right decision to make. We're very experienced at this type of activity and (merger and acquisition) projects."

The FTC did not say why it initiated a second request, Utz president Tom Dempsey said. The commission does not publicly disclose details of pre-merger proceedings, FTC public affairs specialist Mitch Katz said.

Utz employs more than 2,200 workers and Snyder's has more than 2,250 workers, according to the statement. The companies announced their plans to merge Oct. 21.

"Both

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companies have been rigorous in their efforts," Snyder's chairman Mike Warehime said in a statement, "and will continue to work together in community and industry activities."

About Snyder's

Snyder's of Hanover is a family-owned company that employs 2,250 associates and operates 1,800 distribution routes nationwide. It is headquartered in Hanover, with annual revenues of $750 million.

About Utz

Utz Quality Foods produces a full line of snacks in its four Hanover-based

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    • manufacturing facilities. It employs more than 2,200 workers, and has annual sales in excess of $400 million.

    Source: Snyder's and Utz

    The news release is as follows:

    Snyder's of Hanover, Inc. and Utz Quality Foods, Inc. Discontinue Merger

    Hanover, PA - Snyder's of Hanover and Utz Quality Foods announced today their decision to discontinue pursuit of the merger between the two snack food companies. After receiving word late last week that the first and second filing had not been cleared by the Federal Trade Commission (FTC), Utz decided to withdraw from what would likely have been a protracted approval process.

    "Although we recently announced our intended merger with Utz Quality Foods, it was contingent upon Federal Trade Commission (FTC) clearance," noted Carl E. Lee, Jr., president and CEO of Snyder's of Hanover. "While the decision was unexpected, it's best that Snyder's move on to other opportunities that are available to our company."

    "While we were excited by the prospect of merging with Snyder's of Hanover, we knew that participating in another FTC request would put a strain on our company and ultimately distract us from what we are here to do every day, which is to provide high-quality snacks to our customers and serve our community," said Michael W. Rice, Utz Quality Foods chairman and chief executive officer. "As we look toward 2010 and beyond, we are committed to staying aggressive in the marketplace and building our product lines."

    Mike Warehime, chairman of Snyder's of Hanover, commented, "Both companies have been rigorous in their efforts and will continue to work together in community and industry activities. Snyder's will continue focusing on developing and supporting our national direct store delivery footprint with our brand building programs, national advertising, outstanding quality and superior store level service."

    Utz Quality Food President Tom Dempsey commented, "We are proud that Utz remains one of the top employers in the region and continues to be a strong community partner. We look forward to the future with renewed focus on our brands, customer and employees."

    Snyder's of Hanover, Inc. is a family owned company that employs 2,250 associates and operates 1,800 distribution routes nationwide. Snyder's of Hanover is headquartered in Hanover, PA, with annual revenues of $750 million.

    Utz Quality Foods, Inc. produces a full line of snacks in its four Hanover, PA-based manufacturing facilities, employs more than 2,200 workers, and has annual sales in excess of $400 million.

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