American chocolate company Hershey Co. said on Monday that it will be buying Amplify, SkinnyPop’s parent company. The value of the acquisition was at around $1.6 billion, or $12 per share, in cash.
The purchase demonstrates Hershey’s increased efforts in moving beyond its chocolate heritage. It is also the newest addition to a string of snack deals as Big Food continues searching for mobile diners.
Hershey CFO Patricia Little recently admitted in an investor call, “Nothing is as profitable [as our core products]… But we do need to expand our portfolio.”
Brands under Amplify include Oatmega, Paqui, Tyrrells, and SkinnyPop.
“The acquisition of Amplify and its product portfolio is an important step in our journey to becoming an innovative snacking powerhouse as together it will enable us to bring scale and category management capabilities to a key sub-segment of the warehouse snack aisle,” said Hershey CEO Michele Buck in a statement.
She then added, “Hershey’s snack mix and meat snacks products, combined with Amplify’s Skinny Pop, Tyrrells, Oatmega, Paqui and other international brands, will allow us to capture more consumer snacking occasions by creating a broader portfolio of brands.”
Most consumers started moving toward more natural foods and ingredients kick-starting the changes in the packaged food companies. Hershey is no exception to this change.
The deal provides Hershey with a better foothold in the new food market known as “better-for-you products that deliver clean, simple and transparent ingredients as well as unique flavors and forms.”
The acquisition is one of the first big initiatives led by Buck who only took over as CEO this year.
The deal is expected to be finalized sometime during the first quarter of 2018.
Campbell Soup Acquires Snyder’s-Lance
Another company out for acquisitions is the Campbell Soup Co.
The company announced that it will be purchasing the snacks company Snyder’s-Lance for $4.87 billion in cash. This is the largest deal the soup company has ever made in its 148-year history.
The deal is also seen as a way to give consumers an “an even greater variety of better-for-you snacks,” said Campbell Soup CEO Denise Morrison in a statement. “The combination of Snyder’s-Lance brands with Pepperidge Farm, Arnott’s and Kelsen will create a diversified snacking leader, drive sales growth, and create value for shareholders.”
Snyder’s-Lance will be a part of Campbell’s global biscuits and snacks division after completing the deal. This division includes brands such as Goldfish crackers and Milano cookies.
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