Utz Quality Foods, a subsidiary of Utz Brands, and Conagra Brands recently entered into an agreement that would allow Utz to purchase H.K. Anderson, a peanut butter-filled pretzel brand, for less than $10 million in cash.
The purchase allows Utz to enter the growing filled-pretzel segment. According to IRI, sales of pretzels increased 10 percent to $1.4 billion for the 52 weeks ending Sept. 6. This is a more than $120 million increase from the previous year.
The purchase includes the H.K. Anderson brand’s intellectual property but does not include equipment, facilities, or employees.
“The approximate $100 million filled segment of pretzels is ripe for innovation and growth,” Dylan Lissette, Utz Brands CEO, said. “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.”
The deal is expected to close in November and is subject to customary closing conditions.
Headquartered in Hanover, Utz has 14 facilities in eight states. Its brands include Utz, Hawaiian, Golden Flake, and Good Health.
Conagra Brands is headquartered in Chicago and is one of North America’s leading branded food companies.