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Hershey to Buy Owner of SkinnyPop Popcorn for $16bn

Publication Date: 19 Dec 2017 - By Market M. By Market M.
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Events Equity USA Consumer

Hershey has announced that it will acquire Amplify, the owner of SkinnyPop popcorn and Tyrell’s potato chips in a $1.6bn deal, representing $12 per share.

The deal comes as Hershey tries to expand beyond its core product – chocolate. Marketers like Hershey have been seeking growth from niche acquisitions, given that consumer enthusiasm for mainstream brands is diminishing. Amplify’s shares surged 70% to $11.95 today.

Amplify’s Share Prices

Source: Google Finance

This is one of the first big initiatives with the company’s new CEO Michele Buck in power, who has previously spoken out about plans to expand into the US snacking category.

Hershey has been involved in a number of small acquisitions over the past few years. In 2015, it acquired beef jerky maker Krave Pure Foods, and in 2016, it acquired the owner of healthy chocolate bar brand barkTHINS.

There have also been other deals in the industry recently. Last month, Mars purchased a minority stake in another snack company, Kind Bar. Similarly, in October, Kellogg signed a $600m deal for protein bar maker RXBar.

The post Hershey to Buy Owner of SkinnyPop Popcorn for $1.6bn appeared first on The Market Mogul.

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Market M.

 

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