Subsidiaries of salty snack manufacturer Utz Brands recently completed their purchase of RW Garcia Holdings, a tortilla chip, cracker, and corn chip maker, for $56 million.
The deal is still subject to customary purchase price adjustments.
Utz expects the transaction will create earnings starting in fiscal year 2022. The company used balance sheet cash and revolving credit to fund the purchase.
Founded in 1982, RW Garcia has tree nut- and peanut-free manufacturing facilities in Las Vegas and Lincolnton, N.C., and all products are non-GMO verified, certified gluten-free, low sodium, kosher, and free of artificial additives or preservatives.
The company’s products are sold in North America, Europe and Australia.
The purchase of RW Garcia complements Utz’s June 2021 purchase of Michigan-based Festida Foods. The purchases provide Utz with strategically placed production facilities in the North, East, and West regions of the United States. In addition, RW Garcia’s products will benefit from Utz’s distribution capabilities and customer relationships nationwide.
Utz operates 17 facilities in 11 states and is headquartered in Hanover. The company’s products are sold nationwide in grocery, drug, convenience, mass merchant, and club stores and through other channels.
Brands include Utz, Good Health, TORTIYAHS!, Zapp’s, Hawaiian Brand, and ON THE BORDER Chips & Dips.