Hanover-based Utz purportedly is the largest privately held and family-managed branded salty snack manufacturer in the US, with brands including Dirty, Good Health, Bachman, Zapp’s and Snikiddy.
The firm manufactures more than a million pounds of potato chips weekly, which it distributes throughout the East Coast.
The Arizona-based Inventure Foods portfolio fits in well with Utz’s offerings, selling both better-for-you and indulgent snacks for brands such as TGI Fridays, Nathan’s Famous, Tato Skins and Bob’s Texas Style.
“[Inventure’s] specialty snack food products and brands, as well as its geographic footprint, customer relationships and distribution strengths, are highly complementary to our business and we look forward to continuing Inventure’s strong heritage of innovation in both healthy and indulgent snacking,” said Dylan Lissette, CEO of Utz Quality Foods.
Acceptation of debt et al
Under the agreement, the $165m purchase price of Inventure Foods will see Utz assume about $75m of debt, net of cash; approximately $8m of Inventure’s estimated closing costs and around $3m due to equity award holders.
“This transaction is the result of diligent analysis and thoughtful strategic deliberations by our board of directors and the result of the strategic and financial review we initiated in July 2016,” said Terry McDaniel, CEO of Inventure Foods.
“Our board, with the advice of independent advisers, determined that this transaction will deliver immediate and certain cash value to our stockholders and new opportunities for our snack brands.”
Earlier this year, Inventure sold its frozen vegetable business to The Pictsweet Co. for $23.7m and its frozen foods business to Oregon Potato Co. for $50m.
The Utz-Inventure transaction is expected to be finalized by the end of the fourth quarter of 2017.