Hershey (HSY) completes acquisition of Dot’s Pretzels & Pretzels Inc
The Hershey Company HSY continues to focus on completing buybacks and strengthening its portfolio. The company has completed the previously announced takeover (November 10, 2021) of Dot’s Pretzels – the owner of Dot’s Homestyle Pretzels – and Pretzels Inc. – a well-known manufacturer of pretzels in the United States. The combined purchase price was $ 1.2 billion, or nearly $ 1 billion of investment, net of expected future tax benefits.
The addition of Dot’s Pretzels – America’s fastest growing pretzel brand – bodes well for the vision of Hershey’s snacking powerhouse. The takeover of Pretzels Inc. brings in-house pretzel manufacturing capability, which will help Dot’s growth and provide the expertise needed to drive future snack innovations.
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Zacks Rank # 2 (Buy) has strategically expanded its presence through acquisitions, which strengthen its portfolio. On June 25, 2021, Hershey completed the acquisition of Lily’s, one of the world’s leading Better-For-You (BFY) confectionery brands. The buyout is in line with Hershey’s goal of building an impressive portfolio of BFY confectionery as part of its multi-pronged, better-for-you snack strategy. The acquisition of Lily’s boosted sales by 1.4 points in the third quarter of 2021. The company acquired ONE Brands, LLC in September 2019 to consolidate its position in the snack category. Prior to that, the company acquired Pirate Brands in October 2018. You can see The full list of Zacks # 1 Rank (Strong Buy) stocks today here.
Several other companies in the food space such as Post Holdings, Inc. PUBLISH, Hormel Food Company HRL and McCormick & Company, Incorporated MKC profits from acquisitions.
In the fourth quarter of fiscal 2021, Post Holdings’ revenue included $ 99.8 million in net sales from acquisitions made through fiscal 2021. Buyouts include the grain-ready business. private label eating Egg Beaters, Almark Foods’ brand of liquid eggs and related assets and Peter Pan Nut Butter Brand.
Hormel Foods strengthens its activities through strategic acquisitions. In June, HRL acquired the Snacking Planters portfolio from The Kraft Heinz Company. Previously, the company acquired Sadler’s Smokehouse, a Texas-based smoked meats company, based in Texas, in March 2020. The buyout is in line with Hormel Foods initiatives to strengthen its position in the restaurant industry.
McCormick has strategically increased its presence through acquisitions, which have strengthened its portfolio. In December 2020, McCormick purchased a 100% stake in FONA International, LLC and some of its subsidiaries. FONA’s diverse portfolio helps McCormick strengthen its value-added offerings and expand the flavor solutions segment into attractive categories. In November 2020, McCormick acquired the parent company of Cholula Hot Sauce, a premium hot sauce brand based in Mexico.
Hershey’s shares are up 24.9% in the past year compared to industrygrowth of 27.7%. POST and HRL gained 4.5% and 1.4% respectively over the past year. MKC edged down 1.3% during this period.
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