Utz Brands, Inc. completed the acquisition of R.W. Garcia Co. Inc. from Garcia family.
December 05, 2021
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Utz Brands, Inc. (NYSE:UTZ) entered into a definitive agreement to acquire R.W. Garcia Co. Inc. from Garcia family for approximately $57.8 million on November 2, 2021. Under the agreement, certain subsidiaries of Utz Brands will acquire the equity and certain real estate assets related to the operation of RW Garcia for a total purchase price of $56 million which is subject to customary purchase price adjustments. As of October 3, 2021, the Company had $26.0 million of cash on hand and $133 million available under its revolving credit facility, providing liquidity in excess of $159 million. The company expects to use balance sheet cash and its revolving credit facility to fund the acquisition. The transaction represents an acquisition multiple of approximately 9.6x RW Garcia Adjusted EBITDA of $5.8 million excluding synergies, and an acquisition multiple of 5.7x including expected run-rate cost synergies of approximately $4.0 million. 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. The transaction is subject to customary closing conditions and is expected to close in the fourth quarter of 2021. Utz expects the transaction to be accretive to earnings in fiscal 2022 and beyond. Houlihan Lokey, Inc. (NYSE:HLI) acted as financial advisor to Utz Brands, Inc.
Utz Brands, Inc. (NYSE:UTZ) completed the acquisition of R.W. Garcia Co. Inc. from Garcia family on December 6, 2021.
Utz Brands, Inc. is a manufacturer of branded salty snacks. The Company produces salty snacks, including potato chips, tortilla chips, pretzels, cheese snacks, pork skins, veggie snacks, pub/party mixes, and other snacks. The Companyâs brands include Power and Foundation brands. Power brands comprised of its Utz brand and On The Border brand; craft brands, such as Zappâs, Golden Flake Pork Skins, TORTIYAHS!, and Hawaiian; BFY brands, such as Good Health and Boulder Canyon, and selected licensed brands, such as TGI Fridays. Foundation brands include regional snacking brands, such as Bachman, Golden Flake Chips and Cheese, Timâs Cascade Snacks, Snyder of Berlin, Dirty Potato Chips, and R.W. Garcia. The Company serves its products to grocery, mass merchant, club, convenience, drug, and other retailers through direct shipments, distributors, and over 2,100 direct-store-delivery routes. The Company manufactures its products in over 16 manufacturing facilities across the United States.