Utz Brands Inc. soared by as much as 89 percent in intra-day trading on Tuesday to $14.10 apiece following announcements that it is merging with Germany-based Intersnack Group for $2.9 billion, offering shareholders a hefty premium over its previous close.
In a statement, Utz Brands Inc. (NYSE:UTZ) said that it entered into a definitive agreement with Intersnack for the sale of all its outstanding shares at a price of $14.25 apiece. The stock represented a 91 percent premium over its $7.45 closing price on Monday.
The hefty premium prompted investors to rush into its stock, although shares traded slightly below the offer price, reflecting the assessment of the time and regulatory approvals needed before the closing of the transaction.
Upon closing, Utz Brands, Inc. (NYSE:UTZ) will become a private entity jointly and equally owned by Intersnack and its founders, the Rice and Lissette Family.
“We believe that Intersnack is a like-minded partner with similar family heritage and a deep appreciation of the power of beloved brands. They understand the importance of investing for the long term and the value of staying close to consumers and communities. We look forward to benefitting from Intersnack’s experience and broad resources as we drive our next century of success for the benefit of our customers, our associates, our suppliers and the communities we serve,” said Chairman Dylan Lissette.
The transaction is expected to close in the fourth quarter of 2026, subject to closing conditions, including approval of Utz Brands Inc.’s (NYSE:UTZ) shareholders.
The Rice and Lissette Family has already agreed to vote in favor of the transaction, representing 42 percent of its stake.
Meanwhile, Dylan will assume the role of Executive Chairman after the transaction.
Earnings Call Scrapped
In line with the pending transaction, Utz Brands Inc. (NYSE:UTZ) said that it will no longer hold its previously announced second quarter earnings call on August 5, 2026.
In the first quarter of the year, the company swung to a net loss of $2.4 million from a $5.7 million net income in the same period last year amid the absence of one-off gains incurred during the comparable period.
Hedge Funds Cautious
Investor sentiment also noticeably weakened in the first quarter of the year.
Based on data from Insider Monkey, 27 hedge funds held positions in the company as of the first three months, down from 31 in the quarter prior.
The combined value of those holdings also slipped by 7 percent to $133.97 million from $144.5 million quarter-on-quarter.
As of July 17, Balyasny Asset Management remained its largest hedge fund holder, owning $20.776 million of its shares, followed by Alyeska Investment Group with $20.26 million shares. Two Sigma Advisors came third at $13.7 million.
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