The US-based chocolate maker, Hershey, has announced it is set to purchase Pirate Brands from B&G Foods for $420mn in a cash deal which will see the company take ownership of snack brands like Pirate’s Booty, Original Tings and Smart Puffs.
The deal is thought to be accretive of the company’s financial targets as Hershey looks to expand its interest in the $2.5bn cheese puffs market.
Mary Beth West, Chief Growth Officer of The Hershey Company, said: “Pirate’s Booty is a leading cheese puffs brand loved by moms and kids as a better-for-you treat.”
“We expect the full Pirate Brands portfolio to be a great fit for Hershey’s growing Amplify business which is targeted toward consumers who are looking for great-tasting snacks without compromise.”
In a bid to diversify its business, Hershey has decided to increase its snack offering as more American consumers have chosen healthier options over chocolate.
Bob Cantwell, President and Chief Executive Officer of B&G Foods said: “Pirate Brands is a terrific business and we believe that it will thrive under the ownership of The Hershey Company.”
The agreement will see Pirate Brands operate within Hershey’s snack unit Amplify with the deal expected to close during the end of 2018.