Sector News

The Hershey Co. has entered into a definitive agreement to acquire nutrition bar maker One Brands, L.L.C. for $397 million, or approximately $325 million net of tax benefits.

Founded in 1999 by Ron McAfee, One Brands offers a portfolio of nutrition bars that provide 20 grams of protein and contain 1 gram of sugar per bar. The bars are all certified gluten-free and come in flavors such as pumpkin pie, cinnamon roll, chocolate chip cookie dough and white chocolate truffle. One Brands also manufactures a line of bars sweetened with stevia called One Basix.

Hershey intends to expand the existing One Brands offerings by “leveraging its core capabilities in sales and distribution, category management and digital commerce,” Hershey said.

One Brands will complement Hershey’s Oatmega business, which it acquired as part of the 2018 purchase of Amplify Snack Brands, as well as its recent investment in Fulfil Holdings Ltd., a European manufacturer of vitamin-fortified, high-protein nutrition bars, Hershey said. The company expects the One Brands acquisition to be slightly accretive to earnings in the first full year post closing.

“One’s portfolio of great tasting nutrition bars, with indulgent flavors such as birthday cake, maple glazed donut and peanut butter pie, will be a strong strategic fit within our overall innovative snacking powerhouse vision,” said Mary Beth West, chief growth officer for Hershey. “Our beloved confection brands will continue to be the engine that drives our business while we broaden our better-for-you portfolio, offering more snacking choices for more consumers.”

The transaction is set to close in the fourth quarter of 2019.

By Rebekah Schouten

Source: Food Business News