The Hershey Company has today announced it has bought Tyrrells and Skinny Pop owner Amplify Snack Brands in a deal worth around $1.6 billion.
Hershey said the deal is expected to be accretive to the company’s financial targets given the growth trajectory of Amplify’s key products.
With consumers turning away from high-sugar foods, Amplify has managed to capitalise on fast-growing trends with a focus on better-for-you products. It also owns protein bar brand Oatmega and Paqui tortilla chips.
The move comes as Hershey aims to expand beyond its chocolate brands. Last month new CEO Michele Buck said that she is open to mergers and acquisitions, seeing them as “playing a key role” in the company’s growth agenda going forward.
Earlier this year Hersehy revealed details of a three-year programme to grow its profit margin and streamline its operating model.
In its most recent third-quarter results, the confectioner posted sales of $2.03 billion – up from $2 billion in the same quarter last year – and a 20% rise in net income.
Michele Buck added that she sees the Amplify acquisition as an important step in The Hershey Company’s journey to becoming “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”.
“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.”
Amplify CEO Ton Ennis said: “Since Amplify’s inception in 2014, our company’s goal has been to bring transparency to our products, and clean ingredients and great-tasting snacks to consumers.
“This transaction is a continuation of our mission as Hershey also believes in bringing to consumers great-tasting snacks made with the best ingredients possible.
“Hershey is a great cultural partner for Amplify and I’m excited for our team who will have access to Hershey’s marketing and go-to-market resources to take our brands to the next level.”
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