Gorilla Foods OKs Takeover Proposal

Gorilla Foods, an Ojai producer of wheat protein-based meat substitutes, has signed a letter of intent to be acquired by Wholesome and Hearty Foods Inc. of Portland, Ore.

Under the agreement, a group of executives headed by Michael Meek, president and chief executive of privately held Gorilla, is to receive Wholesome stock worth $3.8 million. The price will be sweetened if the merger goes well, Meek said.

In a separate transaction, Wholesome agreed to pay $350,000 in cash for Whole Foods Marketing, a distributor partly owned by Gorilla executives.