Utz Brands, the maker of Utz chips, Zapp’s and On The Border, has agreed to be taken private by Germany’s Intersnack Group in a deal valued at about $2.9 billion, handing shareholders a steep premium and giving the European snack giant its first real foothold in the U.S. market.
Under the agreement announced Tuesday, Intersnack will acquire all outstanding Utz Class A common shares for $14.25 apiece in cash—a premium of roughly 91% to the stock’s July 20 closing price. The offer sent Utz shares surging nearly 90% to around $14 in early trading, close to the deal price. Once the transaction closes, Utz will become a private company jointly owned in a 50-50 split between Intersnack and the Rice and Lissette Family Entities, the descendants of Utz’s founding family, and its stock will be delisted from the New York Stock Exchange.
The structure keeps the founding family firmly in the picture rather than cashing them out. Chief Executive Howard Friedman framed Intersnack as a partner whose marketing, manufacturing and technology capabilities would support continued investment in the brands, while board chair Dylan Lissette pointed to a shared family heritage and appreciation for beloved snack labels. Lissette will become executive chair of Utz after the deal closes, and the company said it would maintain its commitment to its Hanover, Pennsylvania, home.
Intersnack’s motivation is straightforward: geographic reach. A family-founded, privately owned manufacturer that started as a German potato-chip producer in 1968, Intersnack has grown into a leading snack maker across Europe and Oceania but currently has no presence in the United States. Executive chairman Johan van Winkel described the tie-up as a compelling opportunity to expand into the large and attractive U.S. snacking market alongside the founding family.
The financing reflects a heavily leveraged, family-backed structure. The purchase will be funded through roughly $920 million in cash from Intersnack, a new $1.1 billion term loan, a $250 million asset-based lending facility, and rollover and reinvested equity from the Rice and Lissette family—including a reinvestment of proceeds from a $44 million settlement of Utz’s tax receivable agreement. The family entities have committed to vote shares representing about 42% of Utz’s outstanding stock in favor of the deal, giving the transaction a substantial head start toward shareholder approval.
The deal lands amid a wave of consolidation across the consumer-goods and food sectors, where companies are combining to better absorb inflationary pressures, shifting tastes and intense competition. Earlier this month, grocer Kroger agreed to buy regional chain Giant Eagle for $1.65 billion, part of the same dealmaking push reshaping how packaged-food and grocery players position themselves for a tougher spending environment.
Utz and Intersnack expect the transaction to close in the fourth quarter of 2026, subject to shareholder approval, regulatory clearances and other customary conditions. For a brand that has been a fixture of the Mid-Atlantic snack aisle for nearly a century, the move trades the scrutiny of public markets for the backing of a global operator—and a family that intends to stay at the table.
JBizNews Desk | Wall Street
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