Utz Brands' Units To Acquire RW Garcia For $56 Mln In Cash

(RTTNews) - Utz Brands, Inc. (UTZ), a maker of branded salty snacks, said on Tuesday that its subsidiaries have entered into a definitive agreement with R.W. Garcia Holdings, LLC and related entities, to buy the equity and certain real estate assets related to the operation of RW Garcia for $56 million in cash.

"RW Garcia has a great track record of better-for-you innovation and production capabilities, and with the RW Garcia brand as part of our portfolio, Utz's retail sales in the better-for-you segment will exceed $100 million on an annual basis following the closing," said Dylan Lissette, chief executive officer of Utz.

The acquirer expects to use balance sheet cash and its revolving credit facility to fund the deal.

The proposed transaction is expected to be concluded in the last quarter of 2021 and accretive to the earnings, starting fiscal 2022.

For the fiscal year ended June 30, 2021, RW Garcia generated net sales and adjusted EBITDA of approximately $66.2 million and $5.8 million, respectively.