HANOVER, Pa. — Hanover-based snack company Utz Brands, Inc. announced this week it has entered an agreement with Insignia Capital Group to buy Truco Enterprises, a leading seller of tortilla chips, salsa, and queso under the brand name On the Border.
The purchase price is $480 million, Utz said.
The acquisition includes all rights to the On the Border trademarks for use in the manufacture, sale, and distribution of snack food products in the United States and certain other international markets.
The transaction, subject to customary regulatory approval, is expected to be complete by the end of the year, according to Utz.
The On the Border brand provides Utz a handhold in the $6.2 billion retail sales tortilla chip sub-category, which is the No. 2 sub-category in salty snacks behind potato chips, Utz said.
It also provides a meaningful presence in salsa, queso, and dips, and a strong innovation pipeline, Utz said.
Utz plans to use its robust sales, manufacturing, and distribution platform to expand On the Border tortilla chips, salsa, and queso further into channels where OTB is under-penetrated, including grocery and convenience, and to increase marketing and innovation investments behind the brand, the company said.
“This strategic acquisition will make Utz a significant competitor in the tortilla chip sub-category, where OTB holds the #3 position, and also provides us with a meaningful position in salsa, queso, and dips,” said Dylan Lissette, CEO of Utz. “In combination with our small but growing premium Tortiyahs!® brand, the integration of the On the Border brand will continue to improve Utz’s scale and product diversification, which are important success factors in salty snacks.
"This acquisition strengthens our competitive position, as well as our financial profile. We are confident this transaction will drive long-term value creation for our stockholders and help position us for continued long-term growth.”
“The Truco team is thrilled to be joining the Utz family of brands, and we are thankful to our partners at Insignia Capital for all of their support,” said Shane Chambers, CEO of Truco Enterprises.
