HANOVER, Pa.--(BUSINESS WIRE)--Utz Brands, Inc. (NYSE: UTZ) (“Utz” or the “Company”), a leading U.S. manufacturer of branded salty snacks, announced that its subsidiaries have entered into a definitive agreement to acquire the assets of two existing third party direct store delivery (“DSD”) distributors of Utz’s products, Clem Snacks, Inc. (“Clem”, a subsidiary of Clem Companies) and J&D Snacks, Inc. (“J&D”). Founded in 1955, Clem is a family-owned and operated distributor based in Brooklyn, New York with approximately one hundred DSD routes in New York City and Long Island. J&D has been serving the Bronx, New York since 1996 with approximately twenty five DSD routes.
Utz believes that the combined acquisition of these 125 DSD routes in New York City and the surrounding region will enable the Company to accelerate share gains in the Salty Snack category across these geographic areas. Over the past twenty-plus years, Utz has been collaborating with New York retailers to expand its presence and increase distribution, and this has resulted in accelerated sales growth of Utz’s Power Brands which include Utz®, Zapp’s®, ON THE BORDER® Chips & Dips, and others. With these acquisitions, Utz will increase its investment in the New York City region and provide enhanced retailer support with increased distribution facilities and sales management, higher service velocity, and an expanded route distribution system.
“We are excited to build on the solid foundation and stellar reputation that the Clem and J&D teams have built. These two key distribution partners have been representing and distributing Utz’s brands in the five boroughs of New York City and Long Island, NY over the last twenty five years, and we look forward to working closely with our independent operator network to expand and grow our expansive portfolio of brands in this vibrant and diverse market”, said Steve Liantonio, Senior Vice President, National Sales Operations of Utz. “The opportunity for growth and expansion remains robust and we are poised to drive it to new heights.”
Transaction Details
Under the terms of the definitive agreement, the assets of Clem and J&D will be acquired by subsidiaries of Utz. The Company expects to use balance sheet cash and its revolving credit facility to fund the purchase price. The transaction is subject to customary closing conditions and is expected to close in the first quarter of 2022. Financial terms were not disclosed.
About Utz Brands, Inc.
Utz Brands, Inc. (NYSE: UTZ) manufactures a diverse portfolio of savory snacks through popular brands including Utz®, ON THE BORDER® Chips & Dips, Golden Flake®, Zapp’s®, Good Health®, Boulder Canyon®, Hawaiian® Brand, and TORTIYAHS!®, among others. After nearly a century with strong family heritage, Utz continues to have a passion for exciting and delighting consumers with delicious snack foods made from top-quality ingredients. Utz’s products are distributed nationally through grocery, mass merchant, club, convenience, drug, and other channels. Based in Hanover, Pennsylvania, Utz operates 17 facilities located in Alabama, Arizona, Illinois, Indiana, Louisiana, Massachusetts, Michigan, Nevada, North Carolina, Pennsylvania, and Washington. For more information, please visit www.utzsnacks.com or call 1-800-FOR-SNAX.
Investors and others should note that Utz announces material financial information to its investors using its investor relations website (investors.utzsnacks.com), SEC filings, press releases, public conference calls and webcasts. Utz uses these channels, as well as social media, to communicate with our stockholders and the public about the Company, the Company’s products, and other issues. It is possible that the information that Utz posts on social media could be deemed to be material information. Therefore, Utz encourages investors, the media, and others interested in the Company to review the information posted on the social media channels listed on Utz’s investor relations website.
Forward-Looking Statements
Certain statements made herein are not historical facts but are “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, as amended. The forward-looking statements generally are accompanied by or include, without limitation, statements such as “will”, “expect”, “intends”, “goal” or other similar words, phrases, or expressions. These statements are based on the current expectations of the Company’s management and are not predictions of actual performance. These statements are subject to a number of risks and uncertainties and the Company’s business and actual results may differ materially.
