HANOVER, PA. – Utz Brands, Inc. plans to acquire Truco Enterprises, Carrolton, Texas, for $480 million. Truco is a manufacturer of tortilla chips, salsa and queso sold under the On The Border (OTB) brand.
The On The Border brand will provide Utz Brands with scale in the $6.2 billion retail tortilla chip category, which is the No. 2 sub-category in salty snacks, according to Utz.
“This strategic acquisition will make Utz a significant competitor in the tortilla chip sub-category, where OTB holds the No. 3 position, and also provides us with a meaningful position in salsa, queso and dips,” said Dylan Lissette, chief executive officer of Utz. “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.”
Utz Brands expects Truco Enterprises to generate $195 million in net sales during fiscal 2020. Once the acquisition is complete, Utz Brands will have approximately $1.3 billion in total retail sales.
“On The Border is now one of the fastest growing tortilla chip brands, and the fastest growing dip brand in the category,” said Shane Chambers, CEO of Truco Enterprises. “Utz will be able to leverage its world class direct-store delivery network to help expand our brand into new markets.”