USA – US manufacturer of salty snacks, Utz Brands is acquiring family-owned maker of organic snacks RW Garcia for US$56 million.
The acquisition gives Utz additional production capacity in Nevada and North Carolina, where RW Garcia have manufacturing facilities.
The significant production capacity is expected to support the continued growth of Utz’s subsidiaries.
RW Garcia’s strong capabilities in the organic savoury snacking sector is also expected to extend UTZ’s presence in the US snack market.
“The RW Garcia team is thrilled to be joining the Utz family,” said Robert Garcia, founder and CEO of RW Garcia.
“The Utz platform will enable our better-for-you RW Garcia branded product line to reach more retailers and consumers.”
Following the acquisition, Utz’ retail sales in the better-for-you segment will exceed US$100 million on an annual basis, Dylan Lissette, chief executive officer Utz Brands revealed.
“We believe this strategic combination will help accelerate the growth of Utz’ brands and expand margins over the long-term, and we look forward to continuing to serve RW Garcia’s existing customers,” Lissette added.
Utz Brands will use balance sheet cash and its revolving credit facility to fund the acquisition, which is expected to close in the fourth quarter.
Utz Brands has increased its presence in the snacks category recently through the acquisitions of certain assets of the H.K. Anderson business announced in September of 2020.
The company has also beefed up its portfolio with the purchase of certain assets of the Vitner’s brand announced in January and all the assets of Festida Foods announced in May.
New On The Border chips and dips
Earlier, Utz Brands expanded its On The Border chips and dips range with the addition of Lightly Salted Café Style Tortilla Chips and two new dips.
The dips are conveniently packaged in wide-mouth jars and include: Southwest Bean Dip and Jalapeño Ranch Dip.
The new Lightly Salted Café Style Tortilla Chips are, on other hand, are made with 50% less sodium than the brand’s regular Café Style Tortilla Chips.
“On The Border fans are truly passionate about their tortilla chips, salsas and dips,” said Stacey Schultz, vice president, marketing, Utz Brands.
“Our new dips, Southwest Bean and Jalapeño Ranch, offer fans big bold flavour while our new Lightly Salted Café Style Tortilla Chips is the perfect alternative for consumers who love On The Border chips but seek lower-sodium options.”
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