BOONTON, NJ. – Snack manufacturer Our Home is acquiring two manufacturing plants in Berlin, Pa., and Fitchburg, Mass., from Utz Brands, Inc., for approximately $18.5 million.
Once the sale is completed, Our Home and Utz will operate under a transition services agreement for up to 12 months, according to the companies. During that time Our Home will co-manufacture certain Utz products.
Our Home manufactures such brands as Food Should Taste Good, Popchips, Real Food From the Ground Up, Good Health, You Need This and RW Garcia. The acquisition increases its manufacturing footprint to seven plants from five plants.
“These acquisitions expand Our Home across potato chips, cheese puffs and popcorn, reinforcing our position as a leading independent better-for-you snacking platform,” said Aaron Greenwald, founder and 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.”
The transaction is the second between the two companies. In February of this year, Our Home acquired the R.W. Garcia and Good Health brands from Utz as well as three manufacturing plants in Lincolnton, NC; Lititz, Pa.; and Las Vegas.
“This transaction will allow us to focus on the next phase of our optimization efforts as we invest in our remaining facilities and continue to deliver on our value creation initiatives,” said Howard Friedman, CEO of Utz Brands. “We now operate 8 primary manufacturing facilities, down from 16 in 2021, allowing us to allocate more volume to our larger manufacturing facilities and better leverage our fixed costs.”
In late 2023, Utz Brands closed a manufacturing plant in Hanover, Pa., and sold two plants in Gramercy, La., and Birmingham, Ala.
The most recent sale to Our Home is expected to provide Utz with approximately $14 million in after-tax net proceeds that will be used to pay down debt, according to the company.