The Maker of Utz Snacks Is Going Public Via SPAC
Last month, special-purpose acquisition company (SPAC) Collier Creek Holdings (NYSE: CCH) announced it will be acquiring Utz Quality Foods, effectively taking Utz public. SPACs provide an alternative means for a company to go public. Although they have been around for decades, the structure has increased in popularity, because companies that use SPACs can go public faster than via the traditional route of an initial public offering (IPO).
Utz Quality Foods owns a portfolio of snack brands, including Zapp's, Good Health, and its iconic Utz-brand potato chips. The company, founded in 1921, is one of the largest family-owned businesses in the United States. As it approached its 100-year anniversary, the family sought to monetize its business holdings and chose the SPAC route over other options.
Collier Creek's proposed acquisition of Utz values the snack food company at $1.56 billion, an 11.6-times multiple of pro forma 2021 adjusted EBITDA. The deal requires shareholders' approval, but it is expected to be completed in the third quarter of 2020.
Source Fool.com
