Utz is considering acquiring Festida Foods, a maker of tortillas and corn chips.
Utz has entered into a deal with Great Lakes Festida Holdings Inc. for $ 41 million. The agreement includes all assets, including real estate located in Grand Rapids, Michigan, related to the operation of Festida Foods. The transaction is subject to customary closing conditions and is expected to close in the second quarter of 2021
Festida is the largest tortilla chip maker for Utz’s On The Border brand of tortilla chips. Utz acquired Truco Enterprises, a holding company of Insignia Capital Group. which sells the products under the On the Border brand in January.
“We anticipate that this strategic acquisition will enable strong supply chain synergies for our On The Border brand and enhance our ability to geographically expand both On The Border and other Utz Power brands in the Midwest,” said Dylan Lissette, CEO of Utz. Release.
Hanover-based Utz Brands Inc. manufactures a number of brands including Utz, On The Border Chips & Dips, Golden Flake, Zapp’s, Good Health, Boulder Canyon, Hawaiian Brand and Tortiyahs! among others. Utz operates 14 facilities in Pennsylvania, Alabama, Arizona, Illinois, Indiana, Louisiana, Washington and Massachusetts.
Utz Quality Foods merged with Collier Creek Holdings, a specialty acquisition company, last year to form Utz Brands Inc.
In addition to the acquisition of the Truco businesses, Utz has acquired a number of other companies in recent years. In 2017, Utz acquired Inventure Foods Inc., an Arizona snack food company. In 2019, Utz acquired Snyder of Berlin, a Somerset County producer of pretzels, chips, popcorn and other snacks from Conagra Foods. Last year, Utz acquired assets of the HK Anderson peanut butter-filled pretzel brand from Conagra Brands. And Utz also acquired Kitchen Cooked Inc. last year.