Utz Brands has agreed to a going-private transaction, which the company believes will provide it with resources to scale operations.
- Intersnack will pay $14.25 per Class A share of Utz to take the company private.
- The deal will be funded using a combination of cash and debt.
- Once the deal closes, Intersnack and the Rice and Lissette Family will each own a 50% stake in Utz.
Shares of Utz Brands (UTZ) skyrocketed on Tuesday after the snacks company agreed to be taken private by Germany’s Intersnack Group in a $2.9 billion deal.
At the time of writing, UTZ stock was up nearly 90% and on track for its highest level in nearly a year, if session gains hold.
Why Is Utz Going Private With Intersnack?
The deal will provide Utz with resources to scale operations and grow its business as a private company. “Intersnack shares our vision for Utz, and their marketing, manufacturing, and technology capabilities will be invaluable as we continue to invest in our brands and accelerate our strategy,” said Utz CEO Howard Friedman.
Moreover, the takeover by Intersnack, which has a widespread presence in the European and Oceania markets for potato-based snacks, will serve as a pathway for the German company to enter the lucrative U.S. snacks market, which is estimated to reach $136.2 billion this year and grow at a compound annual growth rate of 3.7% through 2033, according to data published by Grand View Research.
Intersnack currently owns at least 28 snack brands and generated sales of around 4.5 billion euros in 2025. The Utz deal will add at least 16 U.S. brands to its portfolio, including the TGI Fridays-branded potato chips.
Contours Of The Deal
Intersnack will pay $14.25 per Class A share of Utz to take the company private, which represents a 91% premium to the stock’s last closing price on Monday. The deal will be funded using a combination of cash and debt. Intersnack will contribute $920 million in cash and will rely on asset-based loan and term loan facilities for up to $1.35 billion in borrowings.
The transaction will include rollover equity by the Rice and Lissette Family, the family with the controlling stake in Utz, and a certain amount of reinvestment by them. The family and its affiliates have also committed to vote shares representing about 42% of Utz’s common stock in favor of the transaction.
Once the deal closes, expected in the fourth quarter this year, Intersnack and the Rice and Lissette Family will each own a 50% stake in Utz.
On Stocktwits, retail sentiment toward the stock turned ‘bullish’ from ‘bearish ‘ over the last 24 hours. UTZ stock has surged 36% so far this year, outpacing the S&P 500.
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