Utz Brands subsidiaries, Utz Quality Foods and Heron Holding Corporation, have agreed to acquire Truco Enterprises, a producer of tortilla chips, salsa and queso under the On The Border brand.
The deal will see Utz buy Truco from Insignia Capital Group for $480 million, subject to a customary post-closing purchase price adjustment.
The acquisition includes all rights to the On The Border (OTB) trademarks for use in the manufacture, sale, and distribution of snack food products in the US and certain other international markets.
Utz says the purchase of Truco will expand its position in the tortilla chip sub-category, strengthen its US footprint, as well as enhance its presence in the mass and club retail channels where OTB currently holds a strong position.
“This strategic acquisition will make Utz a significant competitor in the tortilla chip sub-category, where OTB holds the number 3 position, and also provides us with a meaningful position in salsa, queso, and dips,” said Dylan Lissette, CEO of Utz.
Under the terms of the agreement, Truco will become a wholly-owned indirect subsidiary of Utz. On The Border will join Utz’s existing portfolio of snacks that includes Utz, Zapp’s, Good Health and Boulder Canyon.
Following the integration of the brand, Utz plans to use its sales, manufacturing, and distribution platform to expand the On The Border brand further into channels such as grocery and convenience. It also plans to increase marketing and innovation investments behind the brand.
Shane Chambers, CEO of Truco Enterprises, added: “On The Border is now one of the fastest growing tortilla chip brands, and the fastest growing dip brand in the category. Utz will be able to leverage its world class direct store delivery network to help expand our brand into new markets.”
Utz expects Truco Enterprises to generate approximately $195 million in net sales in fiscal 2020. The transaction is expected to close in December 2020, subject to regulatory approval.
© FoodBev Media Ltd 2022
World Beverage Innovation Awards – NOW OPEN FOR ENTRIES!
The awards celebrate excellence and innovation across the global beverage industry.
Don’t miss out on having your innovations recognised on a global scale.
Deadline for entries 23 July – enter now!
Don’t get left behind
Start your free Foodbev magazine trial today and join thousands of fellow industry professionals in receiving food and drink trends direct to our business.
Click here to start your free trial