Hershey To Buy Pirate Brands For $420 Mln

(RTTNews) - Hershey Co. (HSY) Wednesday said it has agreed to buy Pirate Brands, including the Pirate's Booty, Smart Puffs and Original Tings brands, from B&G Foods, Inc. (BGS).

The Pirate Brands purchase price is $420 million, or about $360 million net of tax benefits, the company said in a statement.

The deal is expected to close in the fourth quarter, subject to regulatory approvals and customary closing conditions. The company plans to fund the acquisition with cash on hand as well as short-term borrowings.

"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."

This strategic acquisition is expected to be accretive to Hershey's financial targets given the strong growth trajectory and solid margin structure of the Pirate Brands business.

Pirate Brands will operate within Amplify, which is focused on driving growth in the warehouse snacking aisle with unique product flavors and forms like Skinny Pop, Paqui and Oatmega.