Utz Brands Inc · NYSE:UTZ
Utz Brands — Merger or Acquisition (January 2024)
9 slides from Utz Brands's merger presentation, Jan 31, 2024
Slide 1: Disposition of Three Manufacturing Facilities and Good Health and R.W. Garcia Brands
Utz Brands, Inc. Disposition of Three Manufacturing Facilities and Good Health® and R.W. Garcia® Brands January 31, 2024
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This presentation includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995.The forward-looking statements contained in this presentation include, without limitation, statemen
Slide 3: Summary of transactions
Summary of transactions Transactions o Utz Brands, Inc. (NYSE: UTZ) (“Utz” or the “Company”), a leading U.S. manufacturer of branded salty snacks, today Highlights announced that certain of its subsidiaries including Utz Quality Foods, LLC have entered into a definitive agreement with Our Home™ (“Ou
Slide 4: Summary of transactions (continued)
Summary of transactions (continued) Ancillary o DSD agreement between Utz and Our Home for Utz to continue to distribute Good Health® Arrangements o Co-manufacturing agreements between Utz and Our Home for various products related to the transactions ‒ Our Home to make certain Utz brands (e.g., On t
Slide 5: Brands and facilities included in the transactions
Brands and facilities included in the transactions Manufacturing Facilities Lincolnton, NC (Owned | Crackers & Tortilla Chips) Lititz, PA (Owned | Pretzels) Las Vegas, NV (Leased | Crackers & Tortilla Chips) Source: Company materials. 4
Slide 6: Increases focus on scaled, faster-growing Power Brands
Increases focus on scaled, faster-growing Power Brands Power Brands as a % of total Utz retail sales increases ~200 bps to 92% pro forma for the transactions, and the pro forma retail sales growth rate for total Utz improves ~40 bps Total Utz Retail Sales 52-weeks ended 12/31/23 Pro Forma YoY Growth
Slide 7: Accelerates network optimization strategy and simplifies execution
Accelerates network optimization strategy and simplifies execution Continuous Improvement Network Programs Optimization $90M $45M Capabilities Reduction Reduction in Cost in Cost o Lean Manufacturing o Optimize asset utilization o People o Sourcing excellence o Scale mixing centers o Process o Autom
Slide 8: Network optimization and transition details
Network optimization and transition details Pro forma Q1 2024: 10 manufacturing plants o Reduces manufacturing plants from 13 to 10 Lititz o Co-manufacturing agreements Divested between Utz and Our Home (owned) Our Home to make certain Utz brands (e.g. On The Border® and TORTIYAHS!® tortilla chips,
Slide 9: Reduces financial leverage
Reduces financial leverage Net Leverage Ratio Key Projected Takeaways: (Fiscal Year-end) o Net proceeds to be used to pay down long-term debt of ~$150M, of which more than 90% will be applied to our floating rate term loan 5.0x ~4.5x o Pro forma for the expected debt paydown, fixed-rate debt would c