Utz Brands, Inc. has announced that its subsidiaries have completed the acquisition of the assets of two existing third party direct store delivery (“DSD”) distributors, Clem Snacks, Inc. (“Clem,” a subsidiary of Clem Companies) and J&D Snacks, Inc. (“J&D”). The Company used balance sheet cash and its revolving credit facility to fund the acquisition and the impact to the Company’s net leverage ratio is not meaningful. Utz continues to expect the transaction to be accretive to earnings in fiscal 2022 and beyond.
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 1997 with approximately twenty five DSD routes. Utz believes that the combined acquisition of more than 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.