Utz Brands to Go Private in Deal with Intersnack and Founding Family
Utz Brands, Inc. has agreed to be acquired by Intersnack Group GmbH & Co. KG, taking the snack food company private. The founding family will regain majority ownership as part of the transaction.
Snack food manufacturer Utz Brands, Inc. has announced it has entered into a definitive agreement to be acquired by Intersnack Group GmbH & Co. KG. The transaction will result in Utz Brands becoming a privately held company. As part of the deal, the founding Read family, previously owners of Diamond Foods LLC and Shearer's Foods LLC, will return as the majority equity holders.
The investment group, led by the founding family, plans to offer $15 per share to Utz Brands stockholders. The company's enterprise value is estimated at approximately $1.7 billion in connection with the transaction. Utz Brands is known for its wide array of popular snack products, including potato chips and cheese snacks.
The agreement comes as Utz Brands has faced challenges with recent profitability. Company leadership stated that the new ownership structure will allow for a focus on long-term strategic initiatives without the pressures of being a public company. Industry observers note that this move aims to solidify the company's position in a competitive snack market.
Intersnack Group, a major European snack producer, sees strategic benefits in the acquisition. The company operates in numerous countries and holds a portfolio of well-recognized brands. The combination of the founding family's involvement and Intersnack's international expertise could unlock new growth avenues. The deal is anticipated to close in the third quarter of 2024.