Hershey to Acquire Pirate Brands From B&G Foods
September 12 2018 - 6:00PM
Strengthens Hershey’s position as a better-for-you
snacking leader and within the $14B warehouse snacking aisle
The Hershey Company (NYSE:HSY) and B&G Foods, Inc. (NYSE:BGS)
today 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 $2.5B cheese puffs
category, with retail sales up over 8% on a year-over-year basis,
and a market leader for consumers seeking snacks with clean labels
and no artificial flavors, colors or preservatives.
Pirate Brands will operate within Amplify, Hershey’s
better-for-you snacking hub in Austin, Tx., which is focused on
driving growth in the warehouse snacking aisle with unique product
flavors and forms like Skinny Pop, Paqui and Oatmega.
The Pirate Brands purchase price is $420 million, or
approximately $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.
Safe Harbor Statement
This release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Many of these forward-looking statements can be identified by the
use of words such as "intend," "believe," "expect," "anticipate,"
"should," "planned," "projected," "estimated," and "potential,"
among others. These statements are made based upon current
expectations that are subject to risk and uncertainty. Because
actual results may differ materially from those contained in the
forward-looking statements, you should not place undue reliance on
the forward-looking statements when deciding whether to buy, sell
or hold the company's securities. Factors that could cause results
to differ materially include, but are not limited to: issues or
concerns related to the quality and safety of our products,
ingredients or packaging; changes in raw material and other costs,
along with the availability of adequate supplies of raw materials;
selling price increases, including volume declines associated with
pricing elasticity; market demand for our new and existing
products; increased marketplace competition; disruption to our
manufacturing operations or supply chain; failure to successfully
execute and integrate acquisitions, divestitures and joint
ventures; changes in governmental laws and regulations, including
taxes; political, economic, and/or financial market conditions;
risks and uncertainties related to our international operations;
disruptions, failures or security breaches of our information
technology infrastructure; our ability to hire, engage and retain a
talented global workforce; our ability to realize expected cost
savings and operating efficiencies associated with strategic
initiatives or restructuring programs; complications with the
design or implementation of our new enterprise resource planning
system; and such other matters as discussed in our Annual Report on
Form 10-K for the year ended December 31, 2017. All information in
this press release is as of September 12, 2018. The company
undertakes no duty to update any forward-looking statement to
conform the statement to actual results or changes in the company's
expectations.
About The Hershey Company
The Hershey Company, headquartered in Hershey, Pa., is an
industry leading snacks company known for bringing goodness to the
world through its iconic brands, remarkable people and enduring
commitment to help children in need. Hershey has approximately
17,000 employees around the world who work every day to deliver
delicious, quality products. The company has more than 80 brands
around the world that drive more than $7.5 billion in annual
revenues, including such iconic brand names as Hershey's, Reese's,
Kit Kat, Jolly Rancher, Ice Breakers and SkinnyPop.
For more than 120 years, Hershey has been committed to operating
fairly, ethically and sustainably. Hershey founder, Milton Hershey,
created the Milton Hershey School in 1909 and since then the
company has focused on giving underserved children the skills and
support they need to be successful. Today, the company continues
this social purpose through 'Nourishing Minds,' a global initiative
that provides basic nutrition to help children learn and grow.
To learn more - Visit:
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Media Contact:Leigh
Horner717-508-1247lhorner@hersheys.com
Investor Relations
Contact:Melissa
Poole717-534-7555MPoole@Hersheys.com
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