Intersnack to acquire Utz Brands for $2.9bn, entering US snack market
German snack maker Intersnack is taking Utz Brands private for $2.9 billion, delivering a massive premium to shareholders while securing its first foothold in North America.
Intersnack Group will acquire Utz Brands for approximately $2.9 billion, taking the US salty snack manufacturer private in a deal that highlights the strategic value of established American food brands to European buyers seeking geographic growth.
Intersnack will pay $14.25 per share in cash for all outstanding Class A common stock. The offer represents a roughly 91% premium to Utz’s closing price on July 20, pushing shares up almost 90% to around $14 on Tuesday morning.
For Intersnack, the transaction solves a critical geographic gap. The company began as a German potato chip producer in 1968 and has expanded across Europe and Oceania, but it currently lacks any presence in the United States.
Utz Chief Executive Howard Friedman framed the buyout as a chance to accelerate the company's trajectory using Intersnack's infrastructure. "I have spent significant time with the Intersnack team and have been impressed by Intersnack's deep understanding of the snacking landscape, experience growing distinctive and long-standing brands, and strength in innovation," Friedman said.
Upon completion, Utz will delist from the New York Stock Exchange. Intersnack and the Rice and Lissette family entities will each hold a 50% stake in the newly private business. Dylan Lissette will step into the role of executive chair, and the company will maintain its base in Hanover, Pennsylvania.
The acquisition relies on a leveraged capital structure. Intersnack is supplying roughly $920 million in cash, supported by $1.1 billion in new term loan borrowings and a $250 million asset-based lending facility. The Rice and Lissette family is rolling over its equity, with additional funding coming from a $44 million settlement of Utz's tax receivable agreement.
