HANOVER, Pa., USA – Utz Brands, Inc., a leading U.S. manufacturer of branded salty snacks, announced that its subsidiaries have entered into a definitive agreement to acquire the assets of two existing third party direct store delivery (“DSD”) distributors of Utz’s products, Clem Snacks, Inc. (“Clem”, a subsidiary of Clem Companies) and J&D Snacks, Inc. (“J&D”).
Founded in 1955, Clem is a family-owned and operated distributor based in Brooklyn, New York with approximately one hundred DSD routes in New York City and Long Island. J&D has been serving the Bronx, New York since 1996 with approximately twenty five DSD routes.
Utz believes that the combined acquisition of these 125 DSD routes in New York City and the surrounding region will enable the Company to accelerate share gains in the Salty Snack category across these geographic areas.
Over the past twenty-plus years, Utz has been collaborating with New York retailers to expand its presence and increase distribution, and this has resulted in accelerated sales growth of Utz’s Power Brands which include Utz®, Zapp’s®, ON THE BORDER® Chips & Dips, and others.
With these acquisitions, Utz will increase its investment in the New York City region and provide enhanced retailer support with increased distribution facilities and sales management, higher service velocity, and an expanded route distribution system.
“We are excited to build on the solid foundation and stellar reputation that the Clem and J&D teams have built. These two key distribution partners have been representing and distributing Utz’s brands in the five boroughs of New York City and Long Island, NY over the last twenty five years, and we look forward to working closely with our independent operator network to expand and grow our expansive portfolio of brands in this vibrant and diverse market”, said Steve Liantonio, Senior Vice President, National Sales Operations of Utz. “The opportunity for growth and expansion remains robust and we are poised to drive it to new heights.”
Transaction Details
Under the terms of the definitive agreement, the assets of Clem and J&D will be acquired by subsidiaries of Utz. The Company expects to use balance sheet cash and its revolving credit facility to fund the purchase price. The transaction is subject to customary closing conditions and is expected to close in the first quarter of 2022. Financial terms were not disclosed.
