Conagra Brands Agrees To Sell Direct Store Delivery Snacks Business To Utz Quality Foods

Posted On: 9/12/2019

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CHICAGO -- Conagra Brands Inc. has entered into a definitive agreement to sell its direct store delivery 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 is expected to be completed before the end of the calendar year. Financial terms were not disclosed.

"We continue to reshape our portfolio and focus our resources on priorities that support Conagra's business strategy and create value for shareholders," said Conagra Brands chief executive Sean Connolly. "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, chief executive officer of 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 Brands is celebrating its 100th anniversary. Its iconic brands include Slim Jim, Birds Eye, Marie Callender's, Banquet and Healthy Choice, as well as emerging brands, including Angie's Boomchickapop,

Founded in 1921, Utz manufactures potato chips, pretzels, cheese snacks, corn chips, tortillas, veggie stix/straws, popcorn, onion rings, pork skins and more. Its brands, which include Utz, Golden Flake, Zapp's, Dirty Potato Chips, Good Health, Bachman, Bachman Jax, Wachusett, Snikiddy, and Boulder Canyon, among others, are distributed nationally and internationally. Based in Hanover, Pennsylvania, Utz operates 11 manufacturing facilities located in Pennsylvania, Alabama, Arizona, Indiana, Louisiana and Massachusetts as well as 1,500-plus DSD routes.