UTZ
Germanys Intersnack to take US peer Utz private in $2.9bn deal
Article Summary
BUY- Utz Brands Inc. (NYSE: UZN) agreed to be taken private by Germany's Intersnack Group in a $2.9bn deal that values Utz Brands at $14.25 per share, a 91% premium to its closing share price on 20 July.
- The transaction values the Utz and Boulder Canyon brands at around $2 billion, with the Rice and Lissette families retaining a 50% stake and IntersNack holding the remainder.
- The deal is expected to close in the fourth quarter subject to regulatory approval, though Utz will not host an earnings conference call or issue prepared remarks due to the deal.
- The company will fund the deal through combination of around $920m in cash and $1.1bn from a new loan facility, with a further $250m coming from asset-based lending.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 2.3% | 25% | 20.0 ptsMinimal (2.3%) - Very weak |
| EPS Growth Next 5Y ? | 4.4% | 25% | 10.0 ptsVery Weak (4.4%) - Minimal expectations |
| Target Price Upside ? | 9.7% | 20% | 10.0 ptsNear/At Target (9.7%) - Target: $12.72 vs Current: $14.09 |
| Gross Margin % ? | 27.5% | 15% | 40.0 ptsModerate (27.5%) - Adequate margins |
| Drawdown from 52-Wk High ? | -4.0% | 15% | 20.0 ptsBarely a Dip (-4.0%) - Near recent highs |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About UTZ
- Utz Brands, Inc. manufactures branded salty snacks in the United States.
- The company provides a range of salty snack food products, such as potato chips, tortilla chips, pretzels, cheese snacks, pub and party mixes, pork skins, and ready-to-eat popcorn, as well as other snacks which include salsa and dips; and non-branded and non-salty snacks comprising partner brands, private label, and co-manufacturing products.
- It offers its products under the Utz, On The Border, Zapp's, Boulder Canyon, Golden Flake, Miguelito's, Hawaiian, Bachman, Tim's Cascade, Dirty Potato Chips, TGI Fridays, and Vitner's brand names.
- The company distributes its products through direct-to-warehouse, direct-store-delivery, third-party distributors, and direct-to-consumer.
- Utz Brands, Inc. was founded in 1921 and is headquartered in Hanover, Pennsylvania.