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: Forward-Looking Statements
Disclaimer 1 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, statem
Slide 3: Summary of transactions
Summary of transactions 2(1) Based on classification of brands at recent Investor Day (December 15, 2023). Transactions Highlights o Utz Brands, Inc. (NYSE: UTZ) (“Utz” or the “Company”), a leading U.S. manufacturer of branded salty snacks, today announced that certain of its subsidiaries including
Slide 4: Summary of transactions (continued): Ancillary Arrangements and Timing
Ancillary Arrangements o DSD agreement between Utz and Our Home for Utz to continue to distribute Good Health® 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 the Border® and TORTIYAHS!® tortilla
Slide 5: Brands and facilities included in the transactions
Brands and facilities included in the transactions 4Source: Company materials. Manufacturing Facilities Lincolnton, NC (Owned | Crackers & Tortilla Chips) Las Vegas, NV (Leased | Crackers & Tortilla Chips) Lititz, PA (Owned | Pretzels)
Slide 6: Increases focus on scaled, faster-growing Power Brands
Total Utz Retail Sales 52-weeks ended 12/31/23 YoY Growth Pro Forma YoY Growth Power Brands(1) 7.6% 7.6% Foundation Brands(1) (5.1%) (3.6%) Total Utz 6.3% 6.7% Increases focus on scaled, faster-growing Power Brands 5 Source: Circana Total US MULO-C 52-weeks ended 12/31/23. (1) Groupings based on Inv
Slide 7: Expected to accelerate $45M in network optimization savings
Expected to accelerate $45M in network optimization savings relative to the plan presented at Investor Day(1) Accelerates network optimization strategy and simplifies execution 6 Continuous Improvement Programs $90M Reduction in Cost Capabilities Network Optimization $45M Reduction in Cost o Optimiz
Slide 8: Pro forma Q1 2024: manufacturing plants
Pro forma Q1 2024: 10 manufacturing plants Network optimization and transition details 7 o Reduces manufacturing plants from 13 to 10 o Co-manufacturing agreements between Utz and Our Home Our Home to make certain Utz brands (e.g. On The Border® and TORTIYAHS!® tortilla chips, and Utz® and Bachman®
Slide 9: Reduces financial leverage
Key Projected Takeaways: 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 o Pro forma for the expected debt paydown, fixed-rate debt would comprise ~80% of the total debt, up from ~70%(1) o Accelerates timeframe to