Utz Quality Foods, the nation’s largest family-owned salty snack company, recently entered into an agreement with Collier Creek Holdings, a special purpose acquisition company, to combine and form Utz Brands.
The merger was approved by Utz’s board of managers and Collier Creek’s board of directors.
Under the terms of the agreement, Collier Creek’s sponsor and directors will invest approximately $35 million into the company, and the founding family and owners of Utz will retain more than 90 percent equity stake, which will represent more than 50 percent ownership in Utz Brands.
Sale proceeds will be used to repay Utz’s existing borrowings.
The combined company will be headquartered in Hanover and will be listed on the New York Stock Exchange as “UTZ.” The board of directors will be composed of a majority of independent directors.
“We look forward to working closely with Utz’s management to unlock meaningful value for all stakeholders by investing in innovation and marketing to delight consumers, expanding distribution into new retailers and geographies, broadening the Utz product offering, driving operational efficiencies, and capitalizing on strategic acquisition opportunities that further enhance Utz’s unique platform and brand portfolio,” Jason Giordano, Collier Creek co-founder, said.
The transaction is expected to close in the third quarter.