• Tue. Sep 21st, 2021

SPAC Stock

Special-purpose acquisition company

SPAC Stock NYSE: CCH Collier Creek Holdings will merge in a 1.56 Billion dollar deal with Utz quality foods. This merger will be a remarkable one as Warren Buffett was hinting he wanted a piece of Utz and was quoted saying he snacks on Utz potato sticks well he drinks coke, getting many investors excited. Considering Utz is about to celebrated there 100 year anniversary and has grown in every recession since the 1920s including this one, it’s worth a look so here we go!

First of all Utz is a snack company with over a dozen insanely popular brands including veggie stix, cheese balls & pretzels to name a few. It’s nice to know this won’t be a pump in dump SPAC as traders will likely avoid it do to the lack of hype. However long term value investors should be paying attention, as Utz continues to grow cash flows by acquiring more snack companies.

Utz company highlights

Utz reminds me of a smaller Pepsi and comes with less risk as most SPACs are trying to fund capital for start ups this one is already planning a dividend. Utz produces 1 million pounds of potato chips and about 850,000 pounds of pretzels a week

  • 2020E Net Sales of $910 million and Pro Forma Adj.
  • EBITDA of $124 million
  • Over 43 years of consecutive Adjusted Net Sales Growth
  • 99-year-old family company
  • National and regional brands including Utz, Good Health, Boulder Canyon, Zapp’s and Golden Flake
  • Goldman Sachs and Sageworth are acting as financial advisors to Utz.

Check out Utz presentation here as we always recommend you do your own do-diligence

Collier Creek SPAC CCH Stock to merge under UTZ highlights

CCH stock will finalize and acquired Utz officially at the end of the third quarter. The Rice and Lissette families will retain more than 90 percent of the existing equity stake and will be have 50 percent of ownership in Utz Brands, according to the news release. This is positive sign as it represents that it will continued to be a family run business.

  • Acquisition Enterprise Value of $1.56 billion with an initial public offering of $440 million
  • Winston & Strawn represented Collier Creek Holdings NYSE: CCH.U
  • Utz Snacks stock upon merging will be listed on the NYSE under the UTZ symbol. 
  • Citigroup, Credit Suisse, and BofA Securities are acting as capital markets advisors to Collier Creek.
  • Kirkland & Ellis LLP is acting as legal counsel to Collier Creek.
  • SPAC will merge sometime between September, October time frame

Is CCH Stock A Buy Before Utz Merges?

SPAC stock traders will not enjoy this as it’s a Warren Buffett type investment simply meaning its not like an EV SPAC and will likely lack luster in short term expectations. However long term investors, following that value investing strategy may enjoy this one as it’s arguably got the best fundamentals of any recent SPAC stock.

Utz stock will be on my radar whether I chose to buy it or it not, as Utz is a staple snack brand able to survive crashes and pandemics making it recession proof. Considering this company has almost a 100 year history and is hinting toward a dividend the long term prospects are endless.

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