The US chocolate company Hershey Co has announced that it would buy Pirate Brands from B&G Foods Inc for USD 420 m in an all-cash deal, giving the chocolate group rights to snack brands such as Pirate’s Booty, Smart Puffs and Original Tings.
The deal is expected “to be accretive” to Hershey’s financial targets as the company delves into the more than USD 2.5 bn cheese puffs market, Hershey said in a statement. The company has been diversifying its business by adding more snacks to its portfolio as more American consumers opt for healthier snacks over sugary candies and chocolates.
Last year, Hershey bought Amplify Snack Brands for USD 921 m, helping it expand its range of offerings, adding products such as SkinnyPop popcorn and Paqui tortilla chips to its portfolio. The concern also bought beef jerky maker Krave in 2015. Pirate Brands, which B&G Foods bought in 2013, will operate within Hershey’s snack unit Amplify.