Hershey is looking to create a better-for-you portfolio with the pending acquisition of ONE Brands, a low-sugar, high-protein bar manufacturer. The deal is pegged at $397 million, or about $325 million of net tax benefits, according to a company news release.
Hershey said the transaction will be financed with cash on hand as well as short-term borrowings. The deal is expected to close in the fourth quarter of 2019, subject to regulatory approval.
“ONE’s portfolio of great-tasting nutrition bars, with indulgent flavors such as Birthday Cake, Maple Glazed Doughnut and Peanut Butter Pie will be a strong strategic fit within our overall innovative snacking powerhouse vision,” said Mary Beth West, Hershey’s chief growth officer. “Our beloved confection brands will continue to be the engine that drives our business while we broaden our better-for-you portfolio, offering more snacking choices for more consumers.”
West said this deal will allow Hershey to expand its offerings in the nutrition bar category. The company also intends to expand the existing ONE Brands offerings by leveraging its core capabilities in sales and distribution, category management and digital commerce.
“We’re proud of the brand we built and look forward to continuing to build on our momentum with the strength and capabilities that Hershey can provide,” ONE Brands Founder Ron McAfee said.
Hershey is a major supplier to Walmart Inc. and has a large sales team in Northwest Arkansas to support the Walmart business.