Utz Brands Inc. announced that its subsidiaries have entered into a definitive agreement to acquire the assets of two existing third-party direct store delivery distributors of Utz’s products. The New York City-based DSDs are Clem Snacks Inc. and J&D Snacks Inc.
Founded in 1955, Clem is a family-owned distributor based in Brooklyn with about 100 DSD routes in New York City and Long Island. J&D has been serving the Bronx since 1996 with 25 DSD routes.
Utz said the combined acquisition of the companies' 125 DSD routes will enable it to accelerate share gains in the salty snack category in New York City and the surrounding region.
Under the terms of the definitive agreement, the assets of Clem and J&D will be acquired by subsidiaries of Utz. The company expects to use balance sheet cash and its revolving credit facility to fund the purchase price. Financial terms were not disclosed.
