Subsidiaries of Hanover-based Utz Brands recently purchased equity and certain real estate assets related to the operation of RW Garcia, an artisan chip manufacturer, for $56 million.
The agreement is with R.W. Garcia Holdings.
RW Garcia makes non-GMO verified, certified gluten-free, low sodium, and kosher tortilla chips, crackers, and corn chips that are free of artificial additives or preservatives.
The company has manufacturing facilities in North Carolina and Nevada which will support the continued growth of the Utz portfolio of brands. RW Garcia’s products will benefit from Utz’s distribution capabilities and customer relationships nationwide.
“RW Garcia has a great track record of better-for-you innovation and production capabilities, and with the RW Garcia brand as part of our portfolio, Utz’s retail sales in the better-for-you segment will exceed $100 million on an annual basis following the closing,” Dylan Lissette, Utz CEO, said. “We believe this strategic combination will help accelerate the growth of Utz’s brands and expand margins over the long-term, and we look forward to continuing to serve RW Garcia’s existing customers.”
RW Garcia generated net sales of $66.2 million for the fiscal year ending June 30.
The deal is forecasted to close during the fourth quarter and is subject to customary closing conditions.