Hershey to acquire Pirate Brands from B&g Foods for $420 million
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. ■