Germany's Intersnack Group has struck a deal to take US snacks maker Utz Brands private.
The transaction gives the Utz and Boulder Canyon brand owner an enterprise value of around $2.9bn.
In a joint statement today (21 July), the price per share for the transaction was put at $14.25, which was said to be a 91% premium over Utz Brands’ closing share value on 20 July.
After the completion of the deal, the family shareholders of New York-listed Utz Brands – the Rice and Lissette families – will own 50% and Intersnack holding the remainder.
Intersnack is also a family-owned private business, which generated sales last year of around $5bn.
The company has operations in 31 countries spread across Europe, Asia, Australia and New Zealand. It owns snack brands such as Tyrrells, Tayto, Whole Earth and Hula Hoops.
Johan van Winkel, executive chairman of Intersnack, said: “Our partnership with the Rice and Lissette families, and commitment to Utz, represents a compelling opportunity for Intersnack to expand our exposure into the large and attractive US snacking market, where we do not currently have a presence.
“Together with the Rice and Lissette families and Utz’s management and associates, we see a tremendous opportunity to partner and build on Utz’s strong foundation and help shape the future of snacking in North America.”
The transaction is expected to close in the fourth quarter, subject to regulatory approvals.
Intersnack advised that due to the deal Utz Brands will not host an earnings conference call or issue a presentation or prepared remarks when it is due to present its second-quarter results on 5 August.
Utz Brands CEO Howard Friedman added: “I have spent significant time with the Intersnack team and have been impressed by Intersnack’s deep understanding of the snacking landscape, experience growing distinctive and long-standing brands, and strength in innovation.
“Intersnack shares our vision for Utz, and their marketing, manufacturing, and technology capabilities will be invaluable as we continue to invest in our brands and accelerate our strategy.”
Intersnack provided details of the financing arrangement. It will fund the deal through a combination of around $920m in cash and $1.1bn from a new loan facility. A further $250m will come from an asset-based lending (ABL) package.
The Rice and Lissette families contribution will come from rollover equity, along with a “reinvestment” from them in terms of a “portion of the proceeds from the $44 million settlement of the company’s tax receivable agreement in connection with the transaction”.
Hanover, Pennsylvania-headquartered Utz Brands, which also owns snacks such as On the Border, Zapp’s and Tortiyahs, has seen its shares fall 27.6% this year to close at $7.45 yesterday.
Its full-year 2025 results issued in February showed the company slipped to a net loss of $7.7m compared to a profit of $30.7m a year earlier. On an adjusted basis, net income climbed 6.2% to $117.1m.
Both basic and diluted EPS slid to $0.01 from $0.19 in the corresponding period.
However, sales in the 12 months to 28 December rose 2.1% to $1.44bn and were up 2.4% in organic terms.
EBITDA fell 33% to 122.7m.
