Utz – on the acquisition path once more
Utz Brands, the acquisitive US salty snacks agency, has introduced it’s shopping for native tortilla chips enterprise Festida Meals for US$41m.
Hanover, Pennsylvania-based Utz mentioned the deal “vertically integrates” its On The Border tortilla chips model.
Utz is shopping for Grand Rapids, Michigan-based Festida Meals from Nice Lakes Festida Holdings in a deal that features its manufacturing facility.
Festida Meals, which additionally makes corn chips and pellet snacks, is the most important producer of tortilla chips for Utz’s On The Border model.
Utz mentioned it expects the transaction to be accretive to earnings in 2021 and past.
Dylan Lissette, its CEO, mentioned: “We count on that this strategic acquisition will allow robust provide chain synergies for our On The Border model and improve our means to broaden each On The Border and different Utz energy manufacturers geographically within the Midwest.
“Over time, we intend to broaden manufacturing capabilities within the manufacturing plant to assist development in adjoining sub-categories and higher serve present and future retail prospects in an vital space of geographic development for the corporate. We imagine this strategic mixture will assist speed up development and broaden margins over the long run, and we sit up for persevering with to serve Festida Meals’ present prospects.”
Kyle Curtiss, CEO of Festida Meals, mentioned: “Utz will likely be ready to leverage Festida’s manufacturing experience, capability, and warehousing to assist its manufacturers within the Midwest. Moreover, and of utmost significance to our enterprise, Utz shares a perception in a powerful firm tradition that each helps and encourages member improvement. They’re actually an excellent long-term companion for Festida Meals.”
Festida generated web gross sales and adjusted EBITDA of roughly $14m and $6m, respectively, in FY2020.
Utz has steadily constructed a portfolio of snacks manufacturers via acquisition. Its roster now contains Golden Flake, Zapp’s, Good Well being and Boulder Canyon.
In January, Utz bought the Vitner’s brand from local peer Snak King Corp. for US$25m.