Hershey / PA. (thc) The Hershey Company and B+G Foods Inc. announced that they have entered into a definitive agreement for Hershey to acquire Pirate Brands, including the Pirate’s Booty, Smart Puffs and Original Tings brands.
«Pirate’s Booty is a leading cheese puffs brand loved by moms and kids as a better-for-you treat», said Mary Beth West, Chief Growth Officer, The Hershey Company. «We expect the full Pirate Brands portfolio to be a great fit for Hershey’s growing Amplify business which is targeted toward consumers who are looking for great-tasting snacks without compromise».
«Pirate Brands is a terrific business and we believe that it will thrive under the ownership of The Hershey Company», said Bob Cantwell, President and Chief Executive Officer, B+G Foods.
This strategic acquisition is expected to be accretive to Hershey’s financial targets given the strong growth trajectory and solid margin structure of the Pirate Brands business. Pirate’s Booty is a fast-growing brand in the more than USD 2.5B cheese puffs category, with retail sales up over 8 percent on a year-over-year basis, and a market leader for consumers seeking snacks with clean labels and no artificial flavours, colours or preservatives.
Pirate Brands will operate within Amplify, Hershey’s better-for-you snacking hub in Austin, Texas, which is focused on driving growth in the warehouse snacking aisle with unique product flavours and forms like Skinny Pop, Paqui and Oatmega.
The Pirate Brands purchase price is USD 420 million, or approximately USD 360 million net of tax benefits. The transaction will be financed with cash on hand as well as short-term borrowings. The transaction is expected to close in the fourth quarter of 2018, subject to customary regulatory approvals and other closing conditions.
OTHER TOPICS FROM THIS SECTION FOR YOU:
- Cloetta AB: announces Q2-2024 interim report
- Axfood AB: Reports Q2-2024 Financial Results
- Chef Robotics: Launches AI-Powered Food Robot
- Conagra Brands: Reports Fourth Quarter 2024 Results
- Limerston Capital sells Village Bakery to Groupe Menissez
- GrubMarket: Buys Major Foodservice Company in Texas
- Lantmännen acquires Entrack AB
- DPC Dash: Concludes H1-2024 with Sustained Expansion
- Norway: Orkla Food Ingredients acquires FDE
- Fondo Italiano d’Investimento co-invests in Casa della Piada
- Greggs: invests in a new frozen manufacturing and logistics site
- Bundeskartellamt imposes fine against «Fritz!» manufacturer AVM
- Yum China: Celebrates Opening of its 200th KCoffee Store
- Beijing intends to roll out 5’400 food production robots
- K-Citymarket: sees significant sales growth in Finland
- DPC Dash: reaches 900-store milestone in China
- Coffee Holding: Terminates Merger with Delta Corp Holdings
- Perkins Restaurant + Bakery: introduces new brand identity
- Engelmans Bakery: acquires St. Armands Baking Company
- National DCP: Breaks Ground on New Distribution Center