Stock Markets July 28, 2026 04:02 AM

Family-owned food groups step up U.S. snack acquisitions as valuations soften

European and family-controlled buyers target undervalued American snack makers, citing long-term horizons and cross-border growth plans

By Marcus Reed
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MKC CPB SJM

A wave of acquisitions by family-owned food companies is reshaping the U.S. snack sector as buyers, many from abroad, move to buy public brands seen as undervalued after market selloffs. Recent deals include Utz’s near $3 billion take-private by Germany’s Intersnack with Utz’s founding families, Ferrero’s purchases of WK Kellogg and Power Crunch, and Mars’ $36 billion acquisition of Kellanova. Analysts say family buyers are willing to take a long view and pursue cross-border scale in salty snacks while some public acquirers and private equity firms remain cautious.

Family-owned food groups step up U.S. snack acquisitions as valuations soften
MKC CPB SJM
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Key Points

  • Family-owned food companies are increasingly acquiring U.S. snack brands seen as undervalued after market selloffs tied to weight-loss drug concerns, consumer shifts and high inflation.
  • Intersnack’s near $3 billion take-private of Utz is its first U.S. deal; other family buyers active include Ferrero and Mars, which executed a $36 billion take-private of Kellanova.
  • Analysts say family buyers are viewed as more patient than private equity and public acquirers, and many deals include cross-border plans to globalize snack brands.

Overview

Family-controlled food companies are increasingly acquiring U.S. snack brands as public valuations cool, driven by investor concerns over weight-loss drugs, shifting consumer preferences and persistent inflation. Most recently, Utz, the Hanover, Pennsylvania-based potato chip maker, agreed to go private in a deal valued at nearly $3 billion with Germany’s Intersnack Group and Utz’s founding families.

Deal activity and major transactions

The Utz transaction marks Intersnack’s first acquisition in the United States. Intersnack is a unit of Pfeifer & Langen, a family-owned food conglomerate. The move follows a string of purchases by other family-owned food groups. Italy’s Ferrero acquired cereal maker WK Kellogg and protein snack brand Power Crunch. Earlier, Mars, which is controlled by the Mars family, completed a $36 billion take-private purchase of Kellanova, the maker of Pringles and Cheez-It.

These purchases come as several established food companies have seen their market capitalizations fall; some have even dropped out of the S&P 500 for that reason. Examples cited include Campbell’s and Lamb Weston.

Why family buyers are active

Advisors and bankers say family-owned buyers often have a longer investment horizon than private equity, making them more willing to hold businesses through cyclical or structural adjustments in the grocery aisle. "They want exposure to the U.S. market, and believe there’s some public market value dislocation, which in turn is being used as a buying opportunity," said Adam Taetle, Lazard’s global head of consumer and retail investment banking.

Sources tell analysts that family buyers can think generationally, giving them a different strategic perspective than investors focused on shorter-term exits. That patient approach is one reason these buyers have been able to step in to acquire companies that some public buyers or private equity firms find difficult to justify, particularly in categories that could provoke intense competition with dominant players.

Competitive dynamics and cautious buyers

Salty snacks present a particular competitive dynamic because of PepsiCo’s Frito-Lay scale. Several sources said private equity and public buyers are cautious about large moves into salty snacks given the potential to set up a direct contest with PepsiCo. The article notes PepsiCo’s most recent food acquisition was a $1.2 billion purchase of tortilla chip brand Siete Foods in 2025.

Public acquirers also face scrutiny if a deal underperforms. J.M. Smucker’s 2023 acquisition of Hostess for $5.6 billion was followed by $2.9 billion in impairment charges and an 18% decline in the company’s shares since that transaction, illustrating the risks for acquirers who cannot quickly deliver returns.

Valuation dislocations and market signals

Investment banks and research houses are watching whether family deals will help establish valuation floors for mid- and small-cap food and beverage names that have seen their multiples compress. A TD Cowen note on the Utz deal observed that private companies have repeatedly bought public food companies over the past two years and suggested that such activity could help set a valuation baseline for other "fallen stars" in the sector.

TD Cowen reported the Utz deal valued the company at roughly 12 times core earnings, a multiple that excludes interest, taxes, depreciation and amortization. The note highlighted other companies trading at lower multiples, such as BellRing Brands, which the research house reported as trading below eight times next year’s EBITDA, and Simply Good Foods, trading below six times that metric. For comparison, TD cited PepsiCo trading at around 12 times EBITDA.

Cross-border strategy and growth ambitions

Many of the recent transactions feature a cross-border element, as buyers seek to expand the global reach of acquired brands. The article points to Kellanova’s international expansion of Pringles before Mars purchased the business, and notes Maryland-based McCormick’s acquisition of Unilever’s food unit earlier in the year as evidence of this trend.

Intersnack, which makes brands such as Tyrrells, Pom-Bear and Hula Hoops, is aiming to build a larger global business in salty snacks and to better compete with established players such as PepsiCo. Founded in Germany in 1968, Intersnack operates in 31 countries and generated $5 billion of sales in 2025. When combined with Utz, the company’s sales could grow to $6.6 billion, according to the information provided.

Sources familiar with the Utz deal said they expect Intersnack to pursue additional U.S. acquisitions. Intersnack declined to participate in an interview for this analysis. In the official deal announcement, Intersnack’s executive chairman Johan van Winkel said, "We see a tremendous opportunity to partner and build on Utz’s strong foundation and help shape the future of snacking in North America."

Implications for markets and sectors

The current wave of family-owned bidders has implications for equity valuations in the packaged foods and snacks segments, for consolidation dynamics across borders, and for competitive strategy in categories dominated by large global players. Observers and market participants will be watching whether these buyers spur additional take-privates or reposition assets to drive global growth.


Source limitations

Where the article references market multiples, company sales figures, and analyst commentary, those data points are presented as they were provided. The article does not include projections beyond the cited figures and statements from named sources.

Risks

  • Competition in salty snacks with dominant players like PepsiCo could deter some buyers and raise execution risk for acquirers and potential bidders - impacting the packaged foods sector and large consumer goods companies.
  • Public acquirers face the risk of large impairments and share-price pressure if acquisitions underperform, as illustrated by J.M. Smucker’s takeover of Hostess and subsequent impairment charges - affecting acquirers across consumer staples.
  • Valuation uncertainty for mid- and small-cap food and beverage companies could persist despite takeover activity; multiples vary widely and market reception to deals may determine whether a valuation floor is set.

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