Key Takeaways:
Kaskela Law is investigating whether the $14.25-per-share buyout of Utz Brands shortchanges investors, the firm said July 27.
"Intersnack shares our vision for Utz, and their marketing, manufacturing and technology capabilities will be invaluable as we continue to invest in our brands and accelerate our strategy," Howard Friedman, Chief Executive Officer of Utz, said in a statement when the deal was announced.
Intersnack Group agreed July 21 to acquire all outstanding Class A common shares for $14.25 each in cash, valuing the snack maker at about $2.9 billion including debt. The offer represented a 91% premium to Utz's closing price on July 20. Shares surged 89.2% on the announcement, reflecting the premium's magnitude.
The investigation focuses on whether Utz shareholders could obtain a higher price for their shares. Kaskela Law is examining the fairness of the transaction, which is expected to close in the fourth quarter of 2026. Upon completion, Utz will become privately held, with the Rice and Lissette family entities and Intersnack each owning 50% of the company. Dylan Lissette, currently board chair, will become executive chair of Utz after the deal closes.
The acquisition will be financed through about $920 million in cash from Intersnack, a new $1.1 billion term loan facility, a $250 million asset-based lending facility, rollover equity from the Rice and Lissette family and a reinvestment of proceeds from a $44 million settlement of Utz's tax receivable agreement. Intersnack, a family-founded German snack manufacturer with operations across Europe and Oceania, has no current presence in the US market. The company began as a German potato chip producer in 1968 and has since grown through acquisitions and partnerships.
The investigation could lead to legal challenges that may delay the deal or push Intersnack to raise its offer. Utz shareholders will vote on the transaction, with the Rice and Lissette family and certain affiliates — representing roughly 42% of outstanding common stock — already committed to vote in favor. The outcome will determine whether the 91% premium holds or shareholders secure additional value. Utz shares will be delisted from the New York Stock Exchange after the transaction closes.
This article is for informational purposes only and does not constitute investment advice.
