Family-owned food companies are increasingly acquiring US snack companies, seeking to expand their presence in the market. This trend is driven by the desire to gain exposure to the US market and capitalize on the growing demand for snacks.

Recent Deals

Recently, Hanover, Pennsylvania-based potato chip maker Utz agreed to be taken private by Germany’s Intersnack Group, in a deal valued at nearly $3 billion. This transaction marks the first US deal for Intersnack, a subsidiary of family-owned food conglomerate Pfeifer & Langen.

Other notable deals include Italy’s family-owned Ferrero, which bought cereal maker WK Kellogg and US protein snack brand Power Crunch. Additionally, Mars, the Virginia-based maker of M&M’s and Snickers, acquired Pringles and Cheez-It maker Kellanova in a $36 billion take-private deal.

Market Trends

These acquisitions are driven by the growing popularity of weight-loss drugs, changing consumer tastes, and high inflation, which have led to a decline in the market value of some snack companies. Family-owned buyers are viewed as more patient long-term owners than private equity firms, which find it harder to justify such purchases due to limited exit options.

The acquisition of Utz by Intersnack is expected to create a leading global player in salty snacks, with combined sales of $6.6 billion. Intersnack is seeking to expand its presence in the US market and compete with PepsiCo, the owner of Frito-Lay.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.