Hershey confirms acquisition of One Brands protein bar snacks business
US-based confectionery business Hershey has expanded its snack portfolio of businesses with a $397 million agreement to acquire One Brands, a manufacturer of low-sugar, high-protein nutrition bars.
The purchase move comes as the group continues to expand its series of well-established products, with the company recently marking its 125th anniversary at this year’s Sweets and Snacks Expo in Chicago.
“One’s portfolio of great tasting nutrition bars, with indulgent flavours 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.”
“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,” said Ron McAfee, Founder, One Brands “Our consumer proposition, brand equity and team provide us with confidence, especially when combined with an industry leader like Hershey,” said Peter Burns, CEO, One Brands, LLC.
The acquisition is expected to enable Hershey to provide a competitive offering of brands in the nutrition bar category. ONE Brands will complement the company’s existing Oatmega business, which was acquired as part of the 2018 acquisition of Amplify Snack Brands, Inc., and its recent investment in Fulfil Holdings limited, a European leader in great tasting, vitamin-fortified, high-protein bars. Hershey intends to expand the existing One Brands offerings by leveraging its core capabilities in sales and distribution, category management and digital commerce.
The transaction will be financed with cash on hand as well as short-term borrowings. The transaction is expected to close in the fourth quarter of 2019, subject to customary regulatory approvals and other closing conditions.