HANOVER, PA — Utz Brands announced a definitive agreement for the sale of some brands and assets, including Utz Quality Foods, to Our Home, an independent better-for-you snack platform.
“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.”
Our Home affiliates agreed to purchase the Good Health and R. W. Garcia brands, manufacturing facilities in Lincolnton, NC, and Lilitz, PA, and related assets. The company will also assume Utz’ Las Vegas facility lease and manufacturing operations.
“We are thrilled to announce this acquisition from Utz as it significantly scales Our Home’s snacking platform and manufacturing footprint across the United States,” said Aaron Greenwald, founder and CEO of Our Home. “These transactions support our vision to deliver snacks that satisfy while creating a sense of connection and comfort at tremendous value. Through our owned-production facilities led by our invaluable team members, along with a carefully curated brand portfolio, we aim to be the preferred choice for those seeking high-quality, better-for-you snacks.”
The transactions will total approximately $150 million in after-tax net proceeds. Utz is set to use this to pay down long-term debt, which is expected to lower interest expenses by approximately $12 million in the 2024 fiscal year.
“Our Home’s portfolio of better-for-you brands is well aligned with Good Health and R.W. Garcia’s missions of bringing healthy, innovative snacks to consumers,” Friedman continued. “On behalf of everyone at Utz, I would like to thank our associates within the Good Health and R.W. Garcia businesses for their many contributions. They have a great place within Our Home, and I am confident they will have exciting opportunities ahead.”
