Sector News

Hershey nears $1.6 billion deal to buy Amplify Snacks: CNBC

December 18, 2017
Consumer Packaged Goods

Hershey Co, the maker of Reese’s Peanut Butter Cups and Hershey’s Kisses, is nearing a deal to buy SkinnyPop parent Amplify Snack Brands for $1.6 billion, CNBC reported on Monday.

The deal, which could be announced as early as Monday, would value Amplify at $12 a share, a 71 percent premium to Friday’s closing price, CNBC added, citing sources familiar with the matter.

Global food manufacturers have been struggling with weakening growth as consumers seek healthier foods. Pennsylvania-based Hershey has been boosting its portfolio in snacks, which are typically lower-margin products than candy.

Just over a year ago, The U.S. candy maker had spurned a $107 per share takeover offer from Mondelez.

Hershey’s and Amplify were not immediately available for comment outside regular U.S. business hours.

By Parikshit Mishra

Source: Reuters

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