HANOVER, Pa. — Hanover-based Utz Brands, Inc., a leading U.S. manufacturer of branded salty snacks, announced that its subsidiary Utz Quality Foods, LLC has entered into a definitive agreement with Snak-King Corp. to acquire certain assets related to the Vitner’s brand, a leading brand of snack foods in the Chicago metropolitan market, for a total purchase price of $25 million.
The acquired assets include the intellectual property, including the VITNER’S® trademark, and direct-store-delivery distribution assets related to Vitner’s branded products, the company said.
The deal is expected to close on Feb. 8, Utz said.
Vitner’s, established in 1926, is an iconic brand in the Chicago area and its approximately 55 DSD routes will provide Utz a strengthened foothold in Chicago and the Midwest from which to further grow the presence of its Power Brands, which include Utz®, On The Border®, Zapp’s®, Golden Flake®, Good Health®, Boulder Canyon®, Hawaiian® Brand, and Tortiyahs!® (“Power Brands”).
Following the acquisition, Vitner’s potato chips, cheese snacks, corn snacks and popcorn will move Utz from the No. 7 position to the No. 4 position among salty snacks in the Chicago market, the fourth largest salty snack market in the U.S. at approximately $688 million in annual retail sales for the 52 weeks ending November 29, 2020 according to IRI.
Most of Vitner’s products are currently manufactured by Snak King, but Utz plans to transition manufacturing of most of those products to its own manufacturing plants after closing, further increasing utilization of Utz’s manufacturing network.
“This strategic acquisition will make Utz a more significant competitor in the Chicago area," said Utz CEO Dylan Lissette in a press release announcing the acquisition. "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. 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.”
“We are thrilled to see the Vitner’s brand, established almost 95 years ago, become part of the Utz Brands, Inc. platform,” said Barry Levin, CEO of Snak King. “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.”
