DAUPHIN COUNTY, Pa.– Hershey has agreed to acquire the Pirate Booty brand from B&G Foods Inc. for $420 million.
According to the Wall Street Journal, Pirate Brands, which include Smart Puffs and Original Tings, will add to Hershey’s array of snacks.
A press release said that Hershey Company will acquire the business for $420 million, though the agreement is subject to customary closing and post-closing adjustments.
“Pirate’s Booty is a leading cheese puffs brand loved by moms and kids as a better-for-you treat,” said Mary Beth West, Chief Growth Officer, The Hershey Company. “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.”
“Pirate Brands is a terrific business that has performed very well for us and we believe it will continue to thrive under the ownership of The Hershey Company,” stated Robert C. Cantwell, President and Chief Executive Officer of B&G Foods. “The transaction we are announcing today is a great example of our ability to create meaningful shareholder value through accretive M&A by acquiring and investing in on-trend food brands. We acquired Pirate Brands in 2013 for approximately $195 million and thanks to the passion, creativity and hard work of our dedicated team of employees, we have more than doubled the value of the business in five short years, creating tremendous value for our shareholders.”
B&G Foods intends to use the net proceeds from the sale for the repayment of long-term debt and possible acquisitions. It expects the sale to close in the fourth quarter of 2018, subject to regulatory approval and the satisfaction of customary closing conditions.