Utz Brands has agreed to acquire assets of the H.K. Anderson filled pretzel brand from Conagra Brands for a purchase price of less than $10 million.
The US snack maker says that the transaction will be made through its Utz Quality Foods subsidiary and funded from current cash on hand.
According to data from IRI, provided by Utz, dollar sales of pretzels for the 52 weeks ending 6 September 2020 were up 10% versus the previous year to $1.4 billion.
The acquisition is said to enable Utz to ‘jump start’ its entry into the growing filled pretzel segment.
“The approximate $100 million filled segment of pretzels is ripe for innovation and growth,” said Dylan Lissette, CEO of Utz Brands.
“As we look to increase our share in the rapidly expanding salty snack category through new products and geographic growth, this type of acquisition is tailor made for the synergies and growth opportunity afforded by our platform.”
The transaction, which is expected to close in November 2020, does not include employees, facilities or equipment but does include intellectual property. It is subject to customary closing conditions.
Utz Brands was formed earlier this year following the merger of Utz Quality Foods with investment company Collier Creek Holdings.
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