Utz Brands to Go Private in $2.9 Billion Deal
Utz Brands, the Pennsylvania-based snack food company, has agreed to be acquired by Germany's Intersnack Group for approximately $2.9 billion. The deal will take the company private six years after its initial public offering.
Utz Brands, the century-old snack maker based in Pennsylvania, has reached an agreement to be acquired for approximately $2.9 billion, including debt, by Germany's Intersnack Group. This transaction will transition the company back to private ownership, six years after it became publicly traded.
Intersnack has offered to pay $14.25 in cash for each outstanding share of Utz Brands. This represents a significant premium, close to 91 percent, compared to the company's closing share price on July 20, the day before the sale was announced. Following the news, Utz Brands' shares saw a notable increase, trading near the offer price.
Upon completion of the transaction, ownership of Utz Brands will be split evenly, with Intersnack holding 50 percent and entities representing the Rice and Lissette families, descendants of the founders William and Salie Utz, holding the other 50 percent. The company originated in 1921 when the Utz couple began making potato chips from their home in Hanover, Pennsylvania.
The company continues to produce potato chips, pretzels, and other savory snacks at its original Hanover facility and multiple other locations across the United States. Beyond its core Utz-branded chips, the company's portfolio includes brands such as Zapp's kettle chips, Jax cheese curls, On The Border tortilla chips and dips, and TGI Fridays bagged snacks.