Utz Brands subsidiaries Utz Quality Foods and Heron Holding have signed an agreement with Insignia Capital to acquire snack producer Truco Enterprises for a $480m consideration.

A portfolio company of Insignia Capital, Truco sells tortilla chips, salsa and queso under the ON THE BORDER (OTB) brand.

According to the agreement, Utz Brands will acquire all rights to the OTB trademarks for the manufacture, sale, and distribution of snack food products in the US, as well as certain other international markets.

Utz CEO Dylan Lissette said: “This strategic acquisition will make Utz a significant competitor in the tortilla chip sub-category, wher OTB holds the #3 position and also provides us with a meaningful position in salsa, queso, and dips.

“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.

“This acquisition strengthens our competitive position, as well as our financial profile. We are confident this transaction will drive long-term value creation for our stockholders and help position us for continued long-term growth.”

The deal is expected to bolster Utz’s national geographic footprint and its presence in the mass and club retail segment.

Following the acquisition, Truco will operate as a wholly owned indirect subsidiary of Utz while OTB will join Utz’s existing snack portfolio, which includes Utz, Zapp’s, Good Health and Boulder Canyon.

Truco Enterprises CEO Shane Chambers said: “The Truco team is thrilled to be joining the Utz family of brands, and we are thankful to our partners at Insignia Capital for all of their support.”

Completion of the transaction is expected to take place in December this year, subject to customary closing conditions and regulatory approvals.

Upon completion of the transaction, Utz intends to leverage its sales, manufacturing and distribution platform to expand OTB’s tortilla chips, salsa, and queso presence.

Utz also plans to increase marketing and innovation investments behind the brand.

In September, Utz Quality Foods signed a definitive agreement with Conagra Brands to acquire certain assets of HK Anderson business.