Utz Brands has agreed to acquire Festida Foods, the largest manufacturer of tortilla chips for Utz’s On The Border brand, for $41 million.
The deal will see Utz acquire all assets related to the operation of Festida Foods – including its manufacturing facility located in Grand Rapids, Michigan – from Great Lakes Festida Holdings.
Festida Foods is a manufacturer and co-packer of tortilla chips, corn chips and pellet snacks for branded food companies across the US. This includes the On The Border brand, which Utz gained the trademark rights to after purchasing Truco Enterprises last year for $480 million.
“We expect that this strategic acquisition will enable strong supply chain synergies for our On The Border brand and enhance our ability to expand both On The Border and other Utz power brands geographically in the Midwest,” said Dylan Lissette, CEO of Utz.
“Over time, we intend to expand production capabilities in the manufacturing plant to support growth in adjacent sub-categories and better serve current and future retail customers in an important area of geographic growth for the company. We believe this strategic combination will help accelerate growth and expand margins over the long term, and we look forward to continuing to serve Festida Foods’ existing customers.”
Kyle Curtiss, CEO of Festida Foods, added: “The Festida Foods team is thrilled to be joining the Utz family. As a premier supplier of tortilla chips to Truco Enterprises and On The Border – one of the fastest growing tortilla chip brands in the US – Utz will be in a position to leverage Festida’s manufacturing expertise, capacity, and warehousing to support its brands in the Midwest.”
The transaction is expected to close in the second quarter of 2021, subject to customary conditions.
© FoodBev Media Ltd 2020
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.
Early bird deadline 11 June – enter now!