Utz Brands, Inc. (NYSE: UTZ) (“Utz” or the “Company”) announced
that its subsidiary Utz Quality Foods, LLC has entered into a
definitive agreement with Conagra Brands, Inc. (NYSE: CAG) to
acquire certain assets of the H.K. Anderson business, a leading
brand of peanut butter-filled pretzels. The transaction, with a
purchase price of less than $10 million which will be funded from
current cash-on-hand, enables Utz to jump-start its entry into the
growing filled pretzel segment, leveraging the synergies of its
salty snack platform. The acquisition includes intellectual
property specific to the H.K. Anderson brand and does not include
employees, facilities or equipment. The transaction is expected to
close in November 2020, subject to customary closing
conditions.
“The approximate $100 million filled segment of pretzels is ripe
for innovation and growth,” said Dylan Lissette, Chief Executive
Officer of Utz Brands, Inc. “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.”
While traditional versions of pretzels continue to enjoy
popularity, increased consumer snacking presents opportunities to
accelerate momentum in the pretzel category through innovation.
According to IRI, dollar sales of pretzels increased 10% percent to
$1.4 billion, based on data for the 52 weeks ending September 6,
2020, an increase of more than $120 million versus a year ago.
About Utz Brands, Inc.
Utz manufactures a diverse portfolio of savory snacks under
popular brands including Utz®, Golden Flake®, Zapp’s®, Good
Health®, Boulder Canyon®, Hawaiian® Brand, and Tortiyahs!® among
others.
After nearly a century with strong family heritage, Utz
continues to have a passion for exciting and delighting consumers
with delicious snack foods made from top-quality ingredients. Utz’s
products are distributed nationally and internationally through
grocery, mass merchant, club, convenience, drug and other channels.
Based in Hanover, Pennsylvania, Utz operates fourteen facilities
located in Pennsylvania, Alabama, Arizona, Illinois, Indiana,
Louisiana, Washington, and Massachusetts. For more information,
please visit www.utzsnacks.com or call 1‐800‐FOR‐SNAX.
Investors and others should note that Utz announces material
financial information to its investors using its investor relations
website (https://investors.utzsnacks.com/investors/default.aspx),
SEC filings, press releases, public conference calls and webcasts.
Utz uses these channels, as well as social media, to communicate
with our members and the public about the Company, the Company’s
products and other issues. It is possible that the information that
Utz posts on social media could be deemed to be material
information. Therefore, Utz encourages investors, the media, and
others interested in the Company to review the information posted
on the social media channels listed on Utz’s investor relations
website.
About Conagra Brands
Conagra Brands, Inc. (NYSE: CAG), headquartered in Chicago, is
one of North America's leading branded food companies. Guided by an
entrepreneurial spirit, Conagra Brands combines a rich heritage of
making great food with a sharpened focus on innovation. The
company's portfolio is evolving to satisfy people's changing food
preferences. Conagra's iconic brands, such as Birds Eye®, Marie
Callender's®, Banquet®, Healthy Choice®, Slim Jim®, Reddi-wip®, and
Vlasic®, as well as emerging brands, including Angie's®
BOOMCHICKAPOP®, Duke's®, Earth Balance®, Gardein®, and Frontera®,
offer choices for every occasion. For more information, visit
www.conagrabrands.com.
About H.K. Anderson
Please visit our website at www.hk-anderson.com to learn about
our story and our snacks.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of the “safe harbor” provisions of the Private
Securities Litigation Reform Act of 1995. Utz’s actual results may
differ from its expectations, estimates and projections and
consequently, you should not rely on these forward looking
statements as predictions of future events. Words such as “expect,”
“estimate,” “project,” “budget,” “forecast,” “anticipate,”
“intend,” “plan,” “may,” “will,” “could,” “should,” “believes,”
“predicts,” “potential,” “continue,” and similar expressions are
intended to identify such forward-looking statements. These
forward-looking statements include, without limitation, Utz’s
expectations with respect to future performance. These
forward-looking statements involve significant risks and
uncertainties that could cause the actual results to differ
materially from the expected results. Most of these factors are
outside Utz’s control and are difficult to predict. Factors that
may cause such differences include, but are not limited to: the
risk that the recently completed business combination with Collier
Creek Holdings disrupts plans and operations; the ability to
recognize the anticipated benefits of such business combination,
which may be affected by, among other things, competition and the
ability of the Company to grow and manage growth profitably and
retain its key employees; the outcome of any legal proceedings that
may be instituted against the Company following the consummation of
such business combination; changes in applicable law or
regulations; costs related to the business combination; the
inability of the Company to maintain the listing of the Company’s
Class A Common Stock and public warrants on the New York Stock
Exchange; the inability of the Company to develop and maintain
effective internal controls; the risk that the Company’s gross
profit margins may be adversely impacted by a variety of factors,
including variations in raw materials pricing, retail customer
requirements and mix, sales velocities and required promotional
support; changes in consumers’ loyalty to the Company’s brands due
to factors beyond the Company’s control; changes in demand for the
Company’s products affected by changes in consumer preferences and
tastes or if the Company is unable to innovate or market its
products effectively; costs associated with building brand loyalty
and interest in the Company’s products, which may be affected by
the Company’s competitors’ actions that result in the Company’s
products not suitably differentiated from the products of
competitors; fluctuations in results of operations of the Company
from quarter to quarter because of changes in promotional
activities; the possibility that the Company may be adversely
affected by other economic, business or competitive factors; and
other risks and uncertainties set forth in the section entitled
“Risk Factors” and “Forward-Looking Statements” in the Company’s
Current Report on Form 8-K filed with the U.S. Securities and
Exchange Commission on September 3, 2020. Some of these risks and
uncertainties may in the future be amplified by the COVID-19
outbreak and there may be additional risks that Utz considers
immaterial or which are unknown. It is not possible to predict or
identify all such risks. Utz cautions that the foregoing list of
factors is not exclusive. Utz cautions readers not to place undue
reliance upon any forward-looking statements, which speak only as
of the date made. Utz does not undertake or accept any obligation
or undertaking to release publicly any updates or revisions to any
forward-looking statements to reflect any change in its
expectations or any change in events, conditions or circumstances
on which any such statement is based, except as otherwise required
by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20200929005141/en/
Investor Contacts Ashley DeSimone ICR utz@icrinc.com
646-677-1827
Media Contacts Marie Espinel, Katie Lewis or Hannah
Arnold The LAKPR Group mespinel@lakpr.com, klewis@lakpr.com or
harnold@lakpr.com
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