CHICAGO — Conagra Brands Inc. has entered into a definitive agreement to sell its direct-store delivery (DSD) snacks business to Utz Quality Foods LLC. The sale includes the Tim's Cascade Snacks, Hawaiian Snacks, Erin's, Snyder of Berlin and Husman's brands.
Conagra Brands acquired the DSD snacks business in October 2018 as part of its acquisition of Pinnacle Foods. The transaction is subject to customary closing conditions, and the companies said they expect to complete the deal before the end of the calendar year. They did not disclose the financial terms.
"We continue to reshape our portfolio and focus our resources on priorities that support Conagra's business strategy and create value for shareholders," said Sean Connolly, president and CEO of Conagra Brands. "While Conagra has a large and growing snacks business, we do not currently operate with a DSD model. We believe this business will have more opportunity for growth under Utz, an established DSD operator."
"We are excited about the opportunity to add these important brands and capabilities to our portfolio," said Dylan Lissette, CEO of Hanover, Pa.-based Utz. "These brands bring a strong consumer following and unique craft heritage. Their distribution and manufacturing capabilities, along with their customer relationships, enhance our ability to further grow our brand portfolio further west."
Chicago-based Conagra's brands include Birds Eye, Marie Callender's, Banquet, Healthy Choice, Slim Jim, Reddi-wip and Vlasic, as well as emerging brands such as Angie's Boomchickapop, Duke's, Earth Balance, Gardein and Frontera.
Founded in 1921, Utz is a family-managed, privately held salty snack company producing a full line of products including potato chips, pretzels, cheese snacks, corn chips, tortillas, veggie sticks/straws, popcorn, onion rings, pork skins and more. Its brands, include Utz, Golden Flake, Zapp's, Dirty Potato Chips, Good Health, Bachman, Bachman Jax, Wachusett, Snikiddy and Boulder Canyon.