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Utz Brands has entered into a definitive agreement with Snak King Corp to acquire certain assets of the Vitner's snack brand, for a total purchase price of $25 million.
Assets include the intellectual property, including the Vitner's trademark, and direct-store-delivery (DSD) distribution assets related to Vitner’s branded products.
Established in 1926, Vitner's is a well-known Chicago-based brand. The transaction will enable Utz to strengthen its foothold in Chicago and the Midwest, further growing the presence of its Power Brands, including Utz, On The Border, Zapp’s, Golden Flake, Good Health, Boulder Canyon, Hawaiian Brand and Tortiyahs!
Subject to customary closing conditions, the transaction is expected to close on February 8 2021.
“This strategic acquisition will make Utz a more significant competitor in the Chicago area," said Dylan Lissette, CEO of Utz. "Combined with our recently announced acquisition of the On the Border tortilla chip, salsa and queso brand, we create a strong brand platform to better serve the primary salty snack channels and continue to expand rapidly in this important growth market."
"This transaction is a continuation of our strategy to successfully build long-term value and share by expanding in major metropolitan areas, like we did in New York City in 1994, Boston in 2004, Pittsburgh in 2006 and Atlanta in 2011.”
Lissette continued: “This acquisition strengthens our competitive position and will be a spark for continued growth in the Midwest. We are confident this transaction will drive long-term value creation for our shareholders and help position Utz for continued long-term growth.”
Barry Levin, CEO of Snak King, added: “We are thrilled to see the Vitner’s brand, established almost 95 years ago, become part of the Utz Brands, Inc. platform. Utz will be able to leverage its world-class family of brands and expertise in DSD operations to help Vitner’s continue to serve the Chicago market.”