The Hershey Company (NYSE: HSY) today announced it has entered into a definitive agreement to acquire Dot's Pretzels LLC, the owner of Dot's Homestyle Pretzels, the fastest-growing scale1 brand in the pretzel category.
A company press release stated: "As the fastest growing U.S. pretzel brand, Dot's Pretzels would further accelerate our success in the permissible salty snack category, along with our successful SkinnyPop and Pirate's Booty brands," said Michele Buck, The Hershey Company President and Chief Executive Officer. "With a unique range of bold, distinctive seasonings and a flavorful crunch that creates a premium pretzel experience for consumers, Dot's Pretzels stand apart from all other products in the pretzel category and represents 55 percent of the pretzel category's growth during the past year."
Pretzels Inc., located on Pioneer Drive in Plymouth and based in Bluffton, began operations in 2017. The total purchase price for these two proposed acquisitions is approximately $1.2 billion, or approximately $1 billion of investment net of expected future tax benefits. It will be financed with cash on hand as well as short-term borrowings. The estimated aggregate net sales for the two businesses were approximately $275 million for the 12 months ended September 2021. The combination of these two strategic acquisitions is expected to be slightly accretive to reported earnings per share in 2023 and adjusted earnings per share in 2022. The acquisitions are subject to customary regulatory approvals and are expected to close by the end of 2021.