FESTIDA FOODS acquired by UTZ

Utz acquired the operating assets and associated commercial real estate of Festida Foods from Great Lakes Festida in a cash asset transaction announced on 17 May 2021 and completed on 7 June 2021. The perimeter included the production equipment, intellectual property, inventory, and industrial manufacturing real estate in Grand Rapids. Festida Foods reported revenue of $14m, EBITDA of $5–25M, an EV/EBITDA multiple of 5x–12x, and an EBITDA margin of [members only]. At the time of the transaction, Festida Foods operated production and logistics facilities in western Michigan, functioning as the primary contract manufacturer for the On The Border tortilla chip product lines owned by Utz. Utz financed the purchase price by drawing on its revolving credit facility. The transaction internalised contract manufacturing operations for high-volume snack lines while securing geographic manufacturing coverage across the Midwestern retail territory. Utz integrated the Grand Rapids production infrastructure into its national manufacturing network, maintaining commercial packaging contracts for existing external snack brand clients while scheduling capital expenditures to expand packaging lines and fryers. The parties concluded the asset transfer without external regulatory barriers or shareholder approvals following the execution of definitive asset purchase agreements.