Utz subsidiaries to sell assets

Hanover-based salty snack manufacturer Utz Brands recently announced that some of its subsidiaries have entered into a definitive agreement for the sale of certain assets to New Jersey-based Our Home, an independent Better-For-You snack platform for $18.5 million.

Under the agreement, Our Home will purchase Utz’s Berlin, Pa., and Fitchburg, Mass., manufacturing facilities and certain related assets.

Once the deal closes, which is expected today, the companies will operate under a transition services agreement for up to 12 months, and Our Home will temporarily co-manufacture certain Utz products under the terms of a co-manufacturing agreement.

Our Home will operate the manufacturing facilities and will offer employment to Utz employees working at the facilities.

“This transaction will allow us to focus on the next phase of our optimization efforts as we invest in our remaining facilities and continue to deliver on our value creation initiatives,” Howard Friedman, Utz CEO, said. “We now operate eight primary manufacturing facilities, down from 16 in 2021, allowing us to allocate more volume to our larger manufacturing facilities and better leverage our fixed costs. This is all consistent with the supply chain transformation strategy we outlined at our 2023 Investor Day.”

In February, Our Home purchased three Utz manufacturing facilities and two brands.