HANOVER, PA — Snack giant Utz Brands Inc. said it has entered into a definitive agreement to acquire certain assets related to the Vitner’s snack brand from Snak-King Corp. for a purchase price of $25 million. Intellectual property, including the Vitner’s trademark and direct-store delivery distribution assets related to Vitner’s brands, are part of the transaction, expected to close Feb. 8.
Vitner’s iconic branded potato chips, corn chips, popcorn pork rinds and cheese snacks have been distributed throughout the Chicago area since 1926. Utz said the acquisition will strengthen its foothold in Chicago and the Midwest. Many of Vitner’s products are manufactured by Snak King, but Utz plans to transition manufacturing of most of the products to its own facilities following the transaction’s closing.
Utz’s Power Brands lineup -- which comprises Utz, On The Border, Zapp’s, Golden Flake, Good Health, Boulder Canyon, Hawaiian Bran and Tortiyahs! -- is expected to get a big boost in the Midwest region. And Vitner’s line is expected to move Utz from the No. 7 position to No. 4 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, ended Nov.29, according to IRI.
“This strategic acquisition will make Utz a more significant competitor in the Chicago area,” said Utz chief executive Dylan Lissette. “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.”
