Utz Continues to Optimize Operations With Sale of Two Manufacturing Sites
HANOVER, Pa. — Utz Brands Inc. continues to accelerate its supply chain transformation strategy.
Certain of its subsidiaries, including Utz Quality Foods LLC, entered into a definitive agreement for the sale of certain assets to Our Home, an independent better-for-you platform. Under the pact, affiliates of Our Home have agreed to purchase Utz's Berlin, Pa., and Fitchburg, Mass., manufacturing facilities and certain related assets. This follows a separate transaction in February, in which Our Home purchased three manufacturing facilities and two brands from Utz.
Utz Brands manufactures a diverse portfolio of savory snacks through popular brands including Utz, On The Border Chips & Dips, Golden Flake, Zapp's, Boulder Canyon, Hawaiian Brand and TORTIYAHS!, among others.
"This transaction will allow us to focus on the next phase of our optimization efforts as we invest in our remaining facilities and continue to deliver on our value creation initiatives," said Utz CEO Howard Friedman. "We now operate eight primary manufacturing facilities, down from 16 in 2021, allowing us to allocate more volume to our larger manufacturing facilities and better leverage our fixed costs. This is all consistent with the supply chain transformation strategy we outlined at our 2023 Investor Day."
Following the closing of the transactions, Utz and Our Home will operate under a transition services agreement for up to 12 months. The total consideration for the transactions is $18.5 million, subject to customary adjustments. The deals are expected to close on April 22.
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In addition, post-closing, Our Home will co-manufacture certain Utz products for a period of time under the terms of a co-manufacturing agreement. Our Home plans to continue to operate and grow the manufacturing facilities under its platform while offering employment to Utz associates working in those facilities as part of the transition, the company stated.
"We are thrilled to announce this acquisition from Utz as it further scales Our Home's snacking platform and manufacturing footprint, providing us the ability to manufacture potato chips, puffed snacks and popcorn across our better-for-you brands," said Aaron Greenwald, founder and CEO of Our Home.
RBC Capital Markets LLC is serving as exclusive financial advisor and Cozen O'Connor P.C. is serving as legal advisor to Utz Brands. Winston & Strawn LLP is serving as legal advisor to Our Home.
Utz Brands is headquartered in Hanover.