Utz Brands has announced its acquisition of organic snacks manufacturer RW Garcia for $56 million.
RW Garcia, which makes tortilla chips, crackers and corn chips, has manufacturing facilities located in Nevada and North Carolina with significant production capacity to support the continued growth of Utz’s subsidiaries.
The better-for-you brand has strong capabilities in the organic savoury snacking sector, which will benefit from Utz’ distribution capabilities and customer relationships across the US.
Dylan Lissette, chief executive officer of Utz, commented: “RW Garcia has a great track record of better-for-you innovation and production capabilities, and with the RW Garcia brand as part of our portfolio, Utz’ retail sales in the better-for-you segment will exceed $100 million on an annual basis following the closing”.
He continued: “We believe this strategic combination will help accelerate the growth of Utz’ brands and expand margins over the long-term, and we look forward to continuing to serve RW Garcia’s existing customers”.
The total sum of the investment is subject to customary purchase price adjustments.
Back in January, Utz Brands acquired Vitner’s snack brand for a total purchase price of $25 million.
© FoodBev Media Ltd 2021
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