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Utz acquires assets of Chicago snack brand, Vitner, increases market share
Utz acquires assets of Chicago snack brand, Vitner, increases market share
Utz’s newest edition to its portfolio of snack brands is expected to give the Hanover-based snack food company a significant increase in market share in one of the largest salty snack markets in the country.
Utz Brands announced on Monday that Utz Quality Foods entered a definitive agreement with California-based Snak-King Corp. to acquire certain assets of its Chicago snack food brand Vitner’s for $25 million.
The acquisition is expected to move Utz three positions up among salty snacks sales in the Chicago market from seventh to fourth in the region. The Chicago region is the fourth largest salty snack market in the U.S. with approximately $688 million in retail sales last year, according to Utz Brands.
This is the third acquisition since Utz debuted on the New York Stock Exchange last August. In September, the company expanded into the filled pretzel market with the acquisition of assets of H.K. Anderson and into the tortilla chip market with the acquisition of On The Border tortilla chips, salsa and queso in December.
Between Vitner’s and On The Border, Utz expects to expand rapidly in the Chicago market, said Dylan Lissette, CEO of Utz.
“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,” said Lissette. “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.”
Vitners’ sells a variety of snack foods including potato chips, popcorn, corn chips and pork rinds. The company generated net sales of $25 million for the last twelve month period ending Sept. 27, 2020.
The acquisition is planned to provide an increase in utilization within Utz’s manufacturing network as it transitions production of Vitner’s products to Utz’s network.
