Utz and Zappe: Chip makers in merger deal

The York County-based maker of Utz potato chips has agreed to a business combination with a Louisiana snack food company, the companies announced today.

The structure of the deal between Utz Quality Foods Inc., of Hanover, and Gramercy, La.-based Zappe Endeavors L.L.C. was unclear. In a news release, the two companies said they had signed a letter of intent with an anticipated closing date during the first quarter of 2011.

In 2009, Utz backed out of a proposed sale to Snyder's of Hanover Inc., saying a request for information on that deal from the Federal Trade Commission would strain the company.

Other terms of the Utz-Zappe agreement - including whether one company is fully acquiring the other - were not released. Utz spokesman George Neiderer said he could not comment further.

"The combined snack food companies anticipate increased sales, wider distribution and increased employment from this merger of family owned businesses," the release said.

Zappe Endeavors was founded in 1985 by Ron Zappe, who went into the snack food business after his four petroleum service companies went bankrupt during an oil price crash. The company has plants in Louisiana, California and Pennsylvania that make chips under the Zapp's, Dirty and California Chips labels.

Zapp's is best known for flavors like Cajun Crawtator, Mesquite BBQ, Cajun Dill, Hotter n Hot Jalapeno, and Creole Tomato spiked with Tabasco and Voodoo, a mystery flavor. In addition, natural potato brands are popular along the East and West coasts.

Zappe died June 1 at the age of 67. At the time, the company's general manager, Rod Olson, said Zappe's had grown to the point that it was planning to build another Pennsylvania plant to supply the Northeast.

Olson did not return a call for comment.

Utz has four manufacturing plants in Hanover, a national distribution system and about 2,400 employees. Employment figures for Zappe's were not available.