Utz Brands Inc. (UTZ) this week announced signing of a definitive agreement with Conagra Brands, Inc. through its snack food subsidiary Utz Quality Foods, LLC. The agreement was signed to acquire the H.K. Anderson’s peanut butter-filled pretzel brand from Conagra Brands for a purchase price of under $10 million.

Utz will fund the transaction from its current cash-on-hand. Utz is in efforts of entering into the growing filled pretzel segment to strengthen synergies of its salty snack platform. The current asset acquisition will make Utz able to accelerate those efforts.

As per terms of the acquisition agreement, intellectual property related to the H.K Anderson brand will also be transferred to Utz. But the deal does not include any facilities, equipment or employees of that brand. Companies are expecting completing the transaction by November 2020, subject to completion of customary closing conditions.

Chief Executive Officer of Utz Brands, Inc., Dylan Lissette said that filled segment of pretzels is ready for innovations and growth which is a nearly $100 million market. Commenting on the current agreement, Lissette said this type of acquisition is tailor made for the Utz. As Utz is in efforts of increasing its share in fast growing salty snack category through geographic expansion and adding new products, this acquisition will further add to synergies and growth opportunities Utz has been looking for.

Traditional versions of pretzels are likely to be remaining enjoying the popularity they have earned, but there is room in this category to accelerate momentum through innovative products and ideas.

Dollar sales of pretzels marked a double-digit annual growth rate of 10% to generate $1.4 billion during 52-week period ending September 6, 2020, according a report by IRI. The currently reported sales amount indicates an increase of more than $120 million from that of a year ago.