BOONTON, NJ. – The snack maker Our Home is acquiring the R.W. Garcia and Good Health brands as well as three manufacturing plants from Utz Brands, Inc. for approximately $182.5 million.

R.W. Garcia is a tortilla chip manufacturer and Good Health offers snacks in a variety of formats, including pretzels, vegetable chips, popcorn, puffs and fries. The three manufacturing facilities are in Lincolnton, NC; Lititz, Pa.; and Las Vegas.

“These acquisitions will diversify Our Home brands across a variety of salty snack categories, reinforcing our position as a leading independent better-for-you snacking platform,” said Aaron Greenwald, chief executive officer of Our Home. “We are proud to be building a platform and team that’s dedicated to creating and delivering our products and promise to customers.”

Other brands owned by Our Home include Food Should Taste Good, Popchips, Real Food From the Ground Up and You Need This.

Once the transaction closes, the companies will begin a reciprocal co-manufacturing arrangement with Our Home manufacturing certain Utz products and Utz manufacturing certain Good Health products. The Good Health products also will continue to be distributed through Utz’s direct-store delivery network.

During a Nov. 9 conference call to discuss third quarter results, Howard A. Friedman, CEO of Utz Brands, said the company was seeking ways to optimize its supply chain.

“We expect these transactions to deliver on our supply chain transformation and value creation initiatives, to fast-track our deleveraging timeline by a full year, and to accelerate our brand portfolio strategy to better optimize for growth,” he said of the Our Home transaction. “With this important step in the optimization of our supply chain and brand portfolio, together with immediate benefits to free cash flow from lower interest expense, we are well-positioned to execute against our expansion plans across the US and deliver on our margin target.”

Specifically, the transaction is expected to provide approximately $150 million in after-tax net proceeds, which Utz will use to pay down its long-term debt, according to the company. The debt reduction is expected to lower interest expense by approximately $12 million in fiscal 2024 based on the company’s current outlook for interest rates, and to accelerate Utz’s plan for achieving its target of approximately 3.0-times net leverage by a full year from the end of fiscal 2026 to the end of fiscal 2025.