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Bloomberg
Hershey Co. is near a $1.6 billion deal to buy Amplify Snack Brands Inc., according to CNBC, which cited unidentified sources familiar with the matter.
The deal values Amplify at $12 a share, CNBC said, which would represent a 71 percent premium to Friday’s closing price of $7 a share. Amplify, based in Austin, Texas, has a market cap of
$537 million and markets brands including SkinnyPop popcorn. Total debt as of September 30 was $590.5 million, according to data compiled by Bloomberg.
CNBC said the deal could be announced soon.
Hershey’s move signals the intent of new Chief Executive Officer Michele Buck to lead consolidation in the snacks industry after the maker of Kisses sweets rejected a takeover bid from Oreos-maker Mondelez International Inc. During a March investor meeting, Hershey’s management said it is particularly interested in companies that have accelerated growth in the US snack industry. Hershey shares have gained 10 percent this year, valuing the company at $24 billion.
The US confectionery business has been consolidating amid
sluggish demand for chocolate. Among other deals in the sector, Mars Inc., the maker of M&Ms and Snickers, purchased a minority stake in another in snack company, Kind Bar, in November. Kellogg Co. signed a $600 million deal for protein bar maker Rxbar in October. Hershey has been mentioned as one of the company’s planning to bid for Nestle SA’s US confectionery division.