Family-owned companies have big appetites for US snack M&A

• Family-owned buyers are viewed as more patient, long-term owners than private equity firms, able to 'think generationally' rather than focus on quick exits
• The Utz deal valued the company at roughly 12 times EBITDA, potentially setting a valuation floor for other struggling mid-cap food stocks like BellRing Brands (below 8x) and Simply Good Foods (below 6x)
• Cross-border deals dominate as international family firms like Intersnack seek U.S. market exposure and global expansion, with Intersnack's sales expected to grow from $5 billion to $6.6 billion post-Utz acquisition

Summary: Family-Owned Companies Driving US Snack M&A Activity

Family-owned food companies are aggressively acquiring undervalued U.S. public snack firms, capitalizing on market dislocations caused by weight-loss drug concerns, changing consumer preferences, and inflation pressures.

Key Transactions

• Utz: German family-owned Intersnack Group (subsidiary of Pfeifer & Langen) acquired the potato chip maker for nearly $3 billion at approximately 12 times EBITDA
• Kellanova: Mars (Mars family-controlled) completed a blockbuster $36 billion take-private acquisition of the Pringles and Cheez-It maker in 2024
• WK Kellogg and Power Crunch: Acquired by Italy's family-owned Ferrero
• Siete Foods: PepsiCo acquired for $1.2 billion in 2025

Market Dynamics

Public snack companies like Campbell's and Lamb Weston fell out of the S&P 500 this year due to shrinking market capitalizations. The sector faces headwinds from weight-loss drug popularity and shifting consumer tastes, creating valuation dislocations that family buyers view as opportunities.

Family-owned acquirers are preferred over private equity because they take a generational, long-term approach rather than focusing on near-term exits. Private equity also faces challenges justifying investments given limited exit strategies and competition concerns with PepsiCo's dominant Frito-Lay division.

Cautionary Example

J.M. Smucker's $5.6 billion Hostess acquisition (2023) has resulted in $2.9 billion in impairment charges, illustrating risks for public acquirers.

Future Outlook

TD Cowen identified potential targets including BellRing Brands (trading below 8x forward EBITDA) and Simply Good Foods (below 6x). Cross-border deals continue as companies seek global brand expansion, with Intersnack expected to pursue additional U.S. acquisitions.