Utz Brands will soon have a spicy arsenal of offerings added to its portfolio. Recently, Insignia Capital Group announced it has entered into a definitive agreement to sell Truco Enterprises, a leading maker of tortilla chips, salsa, and queso sold under the On The Border® brand, to Utz Brands for a total purchase price of $480 million.
“The Truco team is thrilled to be joining the Utz family of brands, and we are thankful to our partners at Insignia Capital for all of their support,” said Truco CEO Shane Chambers. “On The Border is now one of the fastest-growing tortilla chip brands and the fastest-growing dip brand in the category. Utz will be able to leverage its world-class Direct Store Delivery network to help expand our brand into new markets. As a result, more consumers across the U.S. will have access to our delicious, high-quality tortilla chips and dips. I’m looking forward to working with Dylan [Lissette, Chief Executive Officer at Utz Quality Foods,] and the rest of the Utz senior management team to continue our excellent growth trajectory.”
According to the press release, the deal is expected to close in December 2020 and is subject to customary closing conditions including the receipt of regulatory approvals. The news follows another acquisition made by Utz as it recently acquired H.K. Anderson Business From Conagra Brands, thereby expanding in filled pretzels.
Insignia Capital Group invested in Truco in 2014 to help the company expand its distribution footprint and launch new product innovations. Together, Insignia and Truco made significant investments in sales and R&D that tripled adjusted EBITDA over the past six years.
“It has been a true pleasure partnering with the Truco team to generate this exceptional outcome for all of the company’s stakeholders,” said David Lowe, CEO of Insignia Capital Group. “We believe Utz will be an exceptional steward of the brand as Truco executes on its next phase of growth.”
What will the specialty world hold as Utz Brands continues to expand its portfolio? Deli Market News will continue to report.