HANOVER, PA. – Utz Brands, Inc., has entered into an agreement to acquire Great Lakes Festida Holdings, Inc., the owner and operator of Festida Foods, Grand Rapids, Mich., for $41 million. Festida Foods is a co-packer of tortilla and corn chips as well as pellet snacks, and the largest manufacturer of chips for Utz’s On the Border tortilla chip brand.
“We expect that this strategic acquisition will enable strong supply chain synergies for our On the Border brand and enhance our ability to expand both On the Border and other Utz power brands geographically in the Midwest,” said Dylan B. Lissette, chief executive officer of Utz.
Festida Foods has a manufacturing plant in Grand Rapids and employs 160.
“Over time, we intend to expand production capabilities in the manufacturing plant to support growth in adjacent sub-categories and better serve current and future retail customers in an important area of geographic growth for the company,” Mr. Lissette said. “We believe this strategic combination will help accelerate growth and expand margins over the long term, and we look forward to continuing to serve Festida Foods’ existing customers.”
This is Utz’s fourth acquisition since the company went public in August 2020 through a special purpose acquisition company transaction. The other acquisitions include H.K. Anderson, a maker of filled pretzels; Truco Enterprises, the manufacturer of On the Border tortilla chips, salsa and queso; and Vitner’s a brand of potato chips, popcorn, pork rinds and cheese snacks.
Utz’s proforma sales in fiscal 2020, ended Jan. 3, were $964 million, an increase over 2019 when the company had sales of $768 million.