US chilled food company Reser’s Fine Foods has acquired rival Vaughan Foods in a deal worth US$18.3m.

Vaughan’s board has approved the transaction, which is subject to the approval of its shareholders and other closing conditions, and is expected to close in the autumn.

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Should they approve the deal, investors in Vaughan will receive $1.58 a share, representing a 285% premium to the company’s closing stock price on 13 May.

Vaughan makes products including salads and fresh-cut fruit and vegetables. Its main production site is in Oklahoma, although it makes soups and sauces in Texas.

Herb Grimes, Vaughan’s CEO and chairman, said the company was “extremely pleased” with the offer from Reser’s. “We believe the offer benefits our employees, their families and our investors,” he said.

In May, Vaughan recorded a net loss of $0.2m for the first quarter of 2011, compared to net earnings of $0.1m in the comparable quarter of 2010, as poor weather and a spike in fuel prices pushed up costs.

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However, revenues increased by 8.7% to $23.6m, which was driven by enhanced pricing and shifts in product mix from lower margin items to higher margin items.

In 2010, Vaughan made an annual loss of $362,000, compared to a loss of $500,000 in 2009. EBITDA rose from $2m in 2009 to $2.8m in 2010 despite a 2.8% fall in sales to $93.8m.

Nevertheless, Reser’s president and CEO Mark Reser saw benefits in the acquisition. “The synergies between Vaughan Foods and Reser’s Fine Foods will provide our valued customers with a wider range of today’s freshest foods,” he said.

Family-owned Reser’s makes products including salads, side dishes, dips and Mexican foods.