Utz Brands to acquire RW Garcia
Utz Brands, Inc., a U.S. manufacturer of branded salty snacks, announced that its subsidiaries have entered into a definitive agreement with R.W. Garcia Holdings, LLC and related entities (“RW Garcia”), to acquire the equity and certain real estate assets related to the operation of RW Garcia. Founded in 1982, RW Garcia is a family-owned and operated artisan maker of high-quality organic tortilla chips, crackers, and corn chips. All RW Garcia products are non-GMO verified, certified gluten-free, low-sodium, kosher, and free of artificial additives or preservatives.
With manufacturing facilities located in Nevada and North Carolina, RW Garcia has significant production capacity to support the continued growth of the Utz portfolio of brands. RW Garcia is complementary to Utz’s June 2021 acquisition of Michigan-based Festida Foods, providing Utz with strategically well-placed production capabilities in the North, East, and West regions of the United States. RW Garcia also has strong capabilities in Better-For-You tortilla chips, crackers, and corn chips, which will benefit from Utz’s distribution capabilities and customer relationships across the United States. The total purchase price of the transaction is $56 million and is subject to customary purchase price adjustments.
“We expect this strategic acquisition will enable strong supply chain synergies, enhance our ability to expand distribution of our existing brands, and supplement our better-for-you product portfolio,” said Dylan Lissette, chief executive officer of Utz. “RW Garcia has a great track record of better-for-you innovation and production capabilities, and with the RW Garcia brand as part of our portfolio, Utz’s retail sales in the better-for-you segment will exceed $100 million on an annual basis following the closing. We believe this strategic combination will help accelerate the growth of Utz’s brands and expand margins over the long-term, and we look forward to continuing to serve RW Garcia’s existing customers.”
“The RW Garcia team is thrilled to be joining the Utz family,” said Robert Garcia, founder and CEO of RW Garcia. “As a premier supplier of tortilla chips, crackers, and corn chips to retailers in North America, we believe Utz will be well-positioned to leverage RW Garcia’s manufacturing footprint and capacity to support its brands across the U.S. Moreover, the Utz platform will enable our better-for-you RW Garcia branded product line to reach more retailers and consumers. Finally, our RW Garcia team is excited to be part of the Utz culture that fosters a growth mindset and places a strong emphasis on talent development. They are truly an ideal long-term partner for RW Garcia.”
Related: Naturally better at RW Garcia
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