American packaged foods company Conagra Brands has announced that it has entered into a definitive agreement to sell its Direct Store Delivery (DSD) snacks business to Utz Quality Foods, LLC.
The sale includes the Tim's® Cascade Snacks, Hawaiian® Snacks, Erin's®, Snyder® of Berlin and Husman's® brands. Conagra Brands acquired the DSD snacks business in October 2018 as part of its acquisition of Pinnacle Foods.
Sean Connolly, president and chief executive officer of Conagra Brands said, "We continue to reshape our portfolio and focus our resources on priorities that support Conagra's business strategy and create value for shareholders. While Conagra has a large and growing snacks business, we do not currently operate with a DSD model. We believe this business will have more opportunity for growth under Utz, an established DSD operator."
Dylan Lissette, chief executive officer of Utz said, "We are excited about the opportunity to add these important brands and capabilities to our portfolio. These brands bring a strong consumer following and unique craft heritage. Their distribution and manufacturing capabilities, along with their customer relationships, enhance our ability to further grow our brand portfolio further west."
The transaction is subject to customary closing conditions and is expected to be completed before the end of the calendar year. Financial terms were not disclosed.