Insignia to sell Mexican style snacks producer Truco Enterprises to Utz Brands
Insignia Capital Group has agreed to sell Truco Enterprises, a maker of tortilla chips, salsa, and queso sold under the On The Border (OTB) brand, to Utz Brands, a US snack food company, for $480 million.
The California-based private equity firm invested in Truco Enterprises about six years ago and is said to have helped in growing its distribution footprint and launch of new products.
David Lowe – CEO of Insignia Capital Group said: “It has been a true pleasure partnering with the Truco team to generate this exceptional outcome for all of the Company’s stakeholders.
“We believe Utz will be an exceptional steward of the brand as Truco executes on its next phase of growth.”
Established in 1991, the Texas-based Truco Enterprises is said to be the third largest player in the $6.2 billion retail sales tortilla chip category, as per IRI MULO+C for the Salty Snack category for the last 52 weeks ending 4 October 2020.
According to Utz Brands, its acquisition of the Mexican style snacks producer will boost its total retail sales in the $28 billion salty snack segment from 3.9% to 4.7%.
Utz Brands is acquiring Truco Enterprises through its subsidiaries – Utz Quality Foods and Heron Holding Corporation.
Utz Brands to acquire Truco Enterprises from Insignia Capital Group. Image courtesy of Utz Brands, Inc.
Dylan Lissette – CEO of Utz Brands said: “This strategic acquisition will make Utz a significant competitor in the tortilla chip sub-category, where OTB holds the #3 position, and also provides us with a meaningful position in salsa, queso, and dips.
“In combination with our small but growing premium Tortiyahs! brand, the integration of the ON THE BORDER brand will continue to improve Utz’s scale and product diversification, which are important success factors in salty snacks.
“This acquisition strengthens our competitive position, as well as our financial profile. We are confident this transaction will drive long-term value creation for our stockholders and help position us for continued long-term growth.”
The deal, which is subject to the receipt of regulatory approvals and meeting of other customary closing conditions, is likely to close next month.
Utz Brands was created in August 2020 following the completion of the acquisition of branded salty snacks producer Utz Quality Foods by Collier Creek Holdings, a special purpose acquisition company. (Read more about – Collier Creek acquisition of Utz Quality Foods)