Utz Brands finalises deal to purchase Vitner’s snack food brand

Utz Brands subsidiary Utz Quality Foods (UQF) has entered a definitive agreement with Snak-King Corp to acquire certain assets of Vitner’s snack food brand for a $25m consideration.

Based in the Chicago area, Vitner’s was established in 1926 and currently has approximately 55 direct-store-delivery (DSD) routes.

Utz CEO Dylan Lissette said: “This strategic acquisition will make Utz a more significant competitor in the Chicago area. Combined with our recently announced acquisition of the On the Border tortilla chip, salsa and queso brand, we create a strong brand platform to better serve the primary salty snack channels and continue to expand rapidly in this important growth market.

“This transaction is a continuation of our strategy to successfully build long-term value and share by expanding in major metropolitan areas, like we did in New York City in 1994, Boston in 2004, Pittsburgh in 2006 and Atlanta in 2011.

“This acquisition strengthens our competitive position and will be a spark for continued growth in the Midwest. We are confident this transaction will drive long-term value creation for our shareholders and help position Utz for continued long-term growth.”

According to the agreement, UQF will acquire Vitner’s intellectual property such as its trademark, and DSD distribution assets associated with its branded products.

The deal is expected to bolster Utz footprint in the Chicago and the Midwest region while expanding presence of its Power Brands, including Utz, On The Border, Zapp’s, Golden Flake, Good Health, Boulder Canyon, Hawaiian Brand, and Tortiyahs!

Snak King currently produces the majority of Vitner’s products, and Utz plans to move manufacturing of most of those products to its own facilities after completion of the deal.

Snak King CEO Barry Levin said: “We are thrilled to see the Vitner’s brand, established almost 95 years ago, become part of the Utz Brands, Inc. platform.

“Utz will be able to leverage its world-class family of brands and expertise in DSD operations to help Vitner’s continue to serve the Chicago market.”

Completion of the deal is subject to customary closing conditions and expected on 8 February.