Hanover-based Utz Brands, a branded salty snacks manufacturer, recently announced that some its subsidiaries will be selling assets and brands to Our Home, an independent Better-For-You snack platform, for $182.5 million.
Under the agreement, Our Home will purchase the Good Health and R.W. Garcia brands, the Lititz, PA., and Lincolnton, N.C., manufacturing facilities and certain related assets. It also will assume the lease and manufacturing operations of Utz’s Las Vegas facility.
After the transaction closes on Monday, Utz and Our Home will operate under a transition services agreement for 12 months. The companies will operate under reciprocal co-manufacturing agreements where they co-manufacture each other’s products.
“We expect these transactions to deliver on our supply chain transformation and value creation initiatives, to fast-track our deleveraging timeline by a full year, and to accelerate our brand portfolio strategy to better optimize for growth,” Utz CEO Howard Friedman said. “With this important step in the optimization of our supply chain and brand portfolio, together with immediate benefits to free cash flow from lower interest expense, we are well-positioned to execute against our expansion plans across the U.S. and deliver on our margin target.”
The Utz DSD network will distribute and sell Certain Good Health products for Our Home.