Utz Brands Expands Direct Store Delivery Capabilities

HANOVER, Pa. — Salty snack manufacturer Utz Brands Inc. announced its subsidiaries have entered into a definitive agreement to acquire the assets of two direct store delivery (DSD) distributors of its products, Clem Snacks Inc. and J&D Snacks Inc.

Founded in 1955, Clem is a family-owned and operated distributor based in Brooklyn, N.Y., with approximately 100 DSD routes in New York City and Long Island, N.Y. J&D has been serving the Bronx, N.Y., since 1996 with approximately 25 DSD routes.

Utz believes that the combined acquisition of these 125 DSD routes in New York City and the surrounding region will enable the company to accelerate share gains in the salty snack category across these geographic areas.

"We are excited to build on the solid foundation and stellar reputation that the Clem and J&D teams have built. These two key distribution partners have been representing and distributing Utz’s brands in the five boroughs of New York City and Long Island over 25 years, and we look forward to working closely with our independent operator network to expand and grow our expansive portfolio of brands in this vibrant and diverse market," said Steve Liantonio, senior vice president, national sales operations of Utz. "The opportunity for growth and expansion remains robust and we are poised to drive it to new heights."

Utz expects to use balance sheet cash and its revolving credit facility to fund the purchase price. The transaction is subject to customary closing conditions and is expected to close in the first quarter of this year. Financial terms were not disclosed.

Hanover, Pa.-based Utz Brands manufactures a portfolio of savory snacks via several brands including Utz, ON THE BORDER chips and dips, Golden Flake, Zapp’s, Good Health, Boulder Canyon, Hawaiian Brand, and TORTIYAHS!, among others.