Utz Sells Snack Brands and Manufacturing Facilities for $182.5M

Snack brand Our Home is acquiring R.W. Garcia and Good Health brands as well as three manufacturing plants from Utz Brands Inc. for about $182.5 million.

R.W. Garcia is a non-GMO tortilla chip, corn chips, and cracker manufacturer. Good Health offers snacks in a variety of formats, including pretzels, vegetable chips, popcorn, puffs, and fries. These will fit in nicely with Our Home's snack brands, which include Popchips, Food Should Taste Good, and Real Food From The Ground Up.

The three manufacturing facilities under the agreement are in Lincolnton, NC; Lititz, PA; and Las Vegas, NV.

"These acquisitions will diversify Our Home brands across a variety of salty snack categories, reinforcing our position as a leading independent better-for-you snacking platform," said Aaron Greenwald, founder and CEO of Our Home. "We are proud to be building a platform and team that's dedicated to creating and delivering our products and promise to customers."

The transaction is expected to close on February 5, 2024. At that time, Our Home will have five total manufacturing facilities across the country from coast to coast. This will empower Our Home to vertically integrate across all salty sub-categories, driving streamlined and substantial growth. Utz and Our Home will operate under a Transition Services Agreement for 12 months.

“We expect these transactions to deliver on our supply chain transformation and value creation initiatives, to fast-track our deleveraging timeline by a full year, and to accelerate our brand portfolio strategy to better optimize for growth," said Howard Friedman, CEO of Utz. "With this important step in the optimization of our supply chain and brand portfolio, together with immediate benefits to free cash flow from lower interest expense, we are well-positioned to execute against our expansion plans across the US and deliver on our margin target."