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Hershey’s adds SkinnyPop parent company, Amplify to its portfolio

BY Gisselle Gaitan

Hershey’s has announced that it has entered an agreement to acquire Austin, Texas-based Amplify Snack Brands. This deal includes all outstanding shares of Amplify for $12.00 per share in cash.

"The acquisition of Amplify and its product portfolio is an important step in our journey to becoming an innovative snacking powerhouse as together it will enable us to bring scale and category management capabilities to a key sub-segment of the warehouse snack aisle," Michele Buck, The Hershey Company president and chief executive officer, said. "Hershey's snack mix and meat snacks products, combined with Amplify's Skinny Pop, Tyrrells, Oatmega, Paqui and other international brands, will allow us to capture more consumer snacking occasions by creating a broader portfolio of brands."   

The Hershey, P.A.-based company believes this acquisition will drive significant shareholder value through growth and margin expansion. Annual rum-rate synergies of approximately $20 million also are expected to be generated over the next two years from cost savings and portfolio optimization, the company said.

"Since Amplify's inception in 2014, our company's goal has been to bring transparency to our products, and clean ingredients and great tasting snacks to consumers," Tom Ennis, Amplify Snack Brands, president and chief executive officer. "This transaction is a continuation of our mission as Hershey also believes in bringing to consumers great-tasting snacks made with the best ingredients possible. Hershey is a great cultural partner for Amplify and I'm excited for our team who will have access to Hershey's marketing and go-to-market resources to take our brands to the next level."

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Campbell to acquire snack company Snyder’s-Lance

BY Gisselle Gaitan

Campbell has announced that it has entered into an agreement to acquire Charlotte, N.C.-based Snyder’s-Lance. This move will enable the Camden, N.J.-based brand to expand its portfolio of leading snack brands, the company said.

Snyder’s-Lance manufactures and markets snack foods such as pretzels, sandwich crackers, kettle chips and deli snack throughout the United States. Its brands include Snyder’s of Hanover, Lance, Kettle Brand, KETTLE chips, Cape Cod, Snack Factory Pretzel Crisps, Pop Secret, Emerald and Late July. 

“The acquisition of Snyder’s-Lance will accelerate Campbell’s strategy and is in line with our Purpose, ‘real food that matters for life’s moments.’ It will provide our consumers with an even greater variety of better-for-you snacks. The combination of Snyder’s-Lance brands with Pepperidge Farm, Arnott’s and Kelsen will create a diversified snacking leader, drive sales growth and create value for shareholders. This acquisition will dramatically transform Campbell, shifting our center of gravity and further diversifying our portfolio into the faster-growing snacking category. We look forward to welcoming Snyder’s-Lance’s employees and their trusted family of leading brands to our company,” Denise Morrison, Campbell’s president and chief executive officer, said. 

Campbell’s baked snack product portfolio generated approximately $2.5 billion in 2017, and this latest acquisition would allow snacking to represent 46% of annual net sales, the company said.

 “Following a thorough review process of strategic options, we believe this transaction maximizes value for our shareholders through an immediate and certain cash premium. The transaction also unlocks the value of our portfolio, reflecting the progress we have made planning and executing our transformation. We are excited to join Campbell and to continue to provide great products to our consumers with an uncompromising focus on ingredients, quality, and taste,” Brian J. Driscoll, president and chief executive officer of Snyder’s-Lance, said.

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Unilever looks to sell its Spreads business to KKR

BY Gisselle Gaitan

London-based Unilever, a leading brand in personal care, home care, food and refreshments has received an offer from KKR — a global investment firm that manages multiple asset classes including private equity, energy, infrastructure, real estate and credit — to purchase its global Spreads business. The offer is for €6.825 billion in Euros and is expected to be on a cash-free and debt-free basis.

“In April of this year, we set out our 2020 programme to accelerate sustainable value creation. After a long history in Unilever we decided that the future of the Spreads business would lie outside the Group. The announcement today marks a further step in reshaping and sharpening our portfolio for long-term growth. The consideration recognizes the market-leading brands and the improved momentum we have achieved. I am confident that under KKR’s ownership, the Spreads business with its iconic brands will be able to fulfill its full potential as well as societal responsibilities,” Paul Polman, CEO of Unilever said.

Part of Unilever Spread’s business includes the brands Becel, Flora, Country Crock, Blue Band, I Can’t Believe It’s Not Butter, Rama and ProActiv. Current CEO of Spreads, Nicolas Liabeuf will continue to lead the business lead.

“The strength of the portfolio of consumer brands in Spreads provides a firm foundation for future growth. We look forward to deploying our global network and operational expertise to support the business’s growth ambitions while continuing to follow Unilever’s responsible sourcing policies, including working towards the goal of sourcing 100 percent sustainable palm oil by 2019,” Johannes Huth, head of KKR EMEA said.

The offer is subject to certain regulatory approvals, employee consultation in certain jurisdictions and expected to be completed by mid-2018.

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