The subsidiaries of Hanover, Pennsylvania-based Utz Brands Inc., a manufacturer of branded salty snacks, have completed the acquisition of RW Garcia Holdings LLC and related entities for $56 million, subject to customary purchase price adjustments.
The company used balance sheet cash and its revolving credit facility to fund the acquisition and said the impact to the company’s net leverage ratio is not meaningful. Utz continues to expect the transaction to be accretive to earnings in fiscal 2022 and beyond.
RW Garcia is a family-owned and operated artisan maker of high-quality organic tortilla chips, crackers and corn chips. All RW Garcia products are non-GMO verified, certified gluten-free, low sodium, kosher and free of artificial additives or preservatives.
With manufacturing facilities located in Nevada and North Carolina, RW Garcia has significant production capacity to support the continued growth of the Utz portfolio of brands. RW Garcia is complementary to Utz’s June acquisition of Michigan-based Festida Foods, providing Utz with strategically well-placed production capabilities in the north, east and west regions of the United States.
RW Garcia also has strong capabilities in better-for-you tortilla chips, crackers and corn chips, which will benefit from Utz’s distribution capabilities and customer relationships across the United States.
Utz Brands Inc. manufactures a diverse portfolio of savory snacks through popular brands including Utz, On The Border Chips & Dips, Golden Flake, Zapp’s, Good Health, Boulder Canyon, Hawaiian Brand and Tortiyahs!, among others.
Utz’s products are distributed nationally through grocery, mass merchant, club, convenience, drug and other channels. The company operates 17 facilities located in Alabama, Arizona, Illinois, Indiana, Louisiana, Massachusetts, Michigan, Nevada, North Carolina, Pennsylvania and Washington.
Founded in 1982, RW Garcia produces all products in its wholly owned tree nut- and peanut-free facilities in Las Vegas, Nevada, and Lincolnton, North Carolina.