Herschey acquisition of Amplify Snack Brands : US chocolate manufacturer The Hershey Company is set to broaden its savory snacking brand portfolio with the acquisition of Skinny Pop Popcorn manufacturer Amplify Snack Brands in a $1.6 billion deal.

The US chocolate manufacturer will also assume Amplify Snack Brands’ net debt of about $600 million, reported Bloomberg on the latest food acquisition news.

Hershey’s will offer $12.00 per share to the shareholders of Amplify Snack Brands in connection with the proposed merger transaction.

The Texas-based Amplify Snack Brands manufactures Better-For-You snacks that include Tyrrells potato chips, Oatmega whey protein bars, Paqui flavored tortilla chips, The Wholesome Food Company, Thomas Chipman and Lisa’s Chips apart from SkinnyPop Popcorn.

According to Amplify Snack Brands, its snack products are prepared with ingredients that are simple, free from major allergens and non-GMO.

Hershey’s is anticipating the acquisition of Amplify Snack Brands to produce considerable shareholder value brought in by growth and margin expansion apart from identified cost synergies.

Commenting on Herschey acquisition of Amplify Snack Brands, Michael Bucks – the President and CEO of The Hershey Company, said:  “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.

“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 Boards of Directors of both companies have given their nod to Herschey acquisition of Amplify Snack Brands. Apart from that, affiliates of TA Associates, the largest stakeholder in Amplify Snack Brands and important insiders in the company, having a total of 57.3% stake, have agreed to cooperate with the transaction.

Tom Ennis – the President and CEO of Amplify Snack Brands, commenting on Herschey acquisition of Amplify Snack Brands, 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. 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.”

Herschey acquisition of Amplify Snack Brands would also need certain regulatory approvals and meet other customary conditions. If it gets through all that, then the transaction is likely to be closed in the Q1 2018.

  Amplify Snack Brands, Food acquisition news, Skinny Pop Popcorn, The Hershey Company, USA