The soon-to-be acquired brands include Pirate’s Booty, smart Puffs and Original Tings brands.
Hershey said the deal, which is expected to close in the fourth quarter of 2018, will be accretive to its financial targets given the ‘strong growth trajectory and solid margin structure’ of the Pirate Brands business.
According to the US chocolate company, Pirate’s Booty is a fast-growing brand in the more than $2.5bn cheese puffs category, which saw retail sales rise over 8% on a year-over-year basis. It is a market leader in the category that features snacks with clean labels and no artificial flavors, colors or preservatives.
“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 at Hershey.
Operating within Amplify Snacks
Hershey noted Pirate Brands will operate within Amplify, which it acquired for $1.6bn in late 2017.
Amplify, which is now Hershey’s better-for-you snacking hub, focuses on driving growth in the warehouse snacking aisle with ‘unique product flavors and forms’ like Skinny Pop, Paqui and Oatmega, said the company.
West said: “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.”