USA – Utz Quality Foods has secured a deal with packaged good company, Conagra Brands to acquire its direct-store delivery (DSD) snacks business.
The transaction includes the Tim’s Cascade Snacks, Hawaiian Snacks, Erin’s, Snyder of Berlin and Husman’s brands.
Conagra Brands acquired the business last year as part of the US$10.9 billion acquisition of Pinnacle Foods.
While Conagra has a large and growing snacks business, chief executive officer Sean Connolly said the brands have more opportunity for growth under an established DSD operator like Utz.
“We continue to reshape our portfolio and focus our resources on priorities that support Conagra’s business strategy and create value for shareholders.
“While Conagra has a large and growing snacks business, we do not currently operate with a DSD model. We believe this business will have more opportunity for growth under Utz, an established DSD operator,” Connolly said.
“We are excited about the opportunity to add these important brands and capabilities to our portfolio. These brands bring a strong consumer following and unique craft heritage,” added Dylan Lissette, chief executive officer Utz Quality Foods.
“Their distribution and manufacturing capabilities, along with their customer relationships, enhance our ability to further grow our brand portfolio further west.”
The transaction is subject to customary closing conditions and is expected to be completed before the end of the calendar year. Financial terms were not disclosed. Financial terms of the transaction were not disclosed.
The deal marks the latest divestiture by Conagra Brands after it agreed to sell its Italian-based frozen pasta business, Gelit.
Utz is an American salty snack company producing a full line of products including potato chips, pretzels, cheese snacks, corn chips, tortillas, veggie stix/straws, popcorn, onion rings and pork skins.
Based in Hanover, Pennsylvania, Utz operates eleven manufacturing facilities and distributes its products under the brands Utz, Golden Flake, Zapp’s, and Boulder and Canyon among others both nationally and internationally.