Collier Creek and Utz Quality Foods form Utz Brands
The merged business will take the century-old family company to the New York Stock Exchange as a better-for-you snack brand
Salty snacks manufacturer Utz Quality Foods has joined forces with Collier Creek Holdings, a special purpose acquisition firm. The companies have agreed to combine the businesses and form Utz Brands, a pure-play snack food platform in the US.
“Utz Brands is a phenomenal business combination that meets all of the criteria we established when we launched Collier Creek,” said Collier Creek co-founder Roger Deromedi.
For Deromedi, the new company launches in the attractive and growing salty snack category, with significant competitive advantages and multiple opportunities to accelerate growth and drive value creation.
“We are confident that Utz can become the fastest-growing pure-play branded snack platform of scale in the US. We look forward to working with the Utz team in the years ahead,” he said.
A century-old business
Founded in 1921, Utz has grown to become the largest family-owned salty snack company in the US, with more than 40 years of consecutive sales growth.
Utz iconic portfolio includes Utz, Zapp’s, Golden Flake, Good Health, and Boulder Canyon, among others.
After nearly a century as a family-owned business, this transaction will introduce Utz as a publicly listed company, with an anticipated initial enterprise value of approximately $1.56 billion.
Collier Creek was co-founded by Chinh Chu, Roger Deromedi and Jason Giordano, who bring more than 80 years of combined investing and operating experience, with a focus on the consumer goods sector.
Deromedi, who had a long and successful tenure as chairman of Pinnacle Foods and, prior to that, as chief executive of Kraft Foods, will become chairman of Utz Brands.
Utz Brands management
Upon the closing of the transaction, it is expected that Utz Brands will trade under the ticker symbol UTZ on the New York Stock Exchange.
Utz Brands’ board of directors will be composed of a majority of independent directors under the applicable listing rules of the New York Stock Exchange.
Dylan Lissette, who has served as Utz’s chief executive since 2013 will continue to lead the business along with the existing management team. Utz Brands will remain headquartered in Hanover, Pennsylvania.
Lissette commented: “This transaction enables Utz to continue its long-term growth plans and provides greater access to capital to fund organic and inorganic growth. We remain deeply committed to Utz’s continued success.”
The Rice and Lissette family, the founding family and owners of Utz, will retain more than 90% of its existing equity stake, which will represent more than 50% ownership in Utz Brands upon completion of the transaction.
Proceeds from the transaction are expected to be used primarily to repay existing borrowings at Utz.