HERSHEY, PA. – The Hershey Co. is making two acquisitions in the pretzel category for a total purchase price of approximately $1.2 billion. The two businesses being acquired are Dot’s Pretzels LLC and Pretzels Inc.
Dot’s Pretzels is the manufacturer of Dot’s Homestyle Pretzels. Pretzels Inc. is a co-manufacturer of pretzels for Dot’s Pretzels and others.
“As the fastest growing US pretzel brand, Dot’s Pretzels would further accelerate our success in the permissible salty snack category, along with our successful SkinnyPop and Pirate’s Booty brands,” said Michele G. Buck, president and chief executive officer of The Hershey Co. “With a unique range of bold, distinctive seasonings and a flavorful crunch that creates a premium pretzel experience for consumers, Dot’s Pretzels stand apart from all other products in the pretzel category and represents 55% of the pretzel category’s growth during the past year.”
Pretzels Inc. operates three manufacturing plants in Indiana and Kansas.
“Pretzels Inc. will help us expand Hershey’s snacking and production capabilities while keeping the special connection to Dot’s,” Ms. Buck said. “It will be important as we continue to grow this already fast-growing brand and create new products in the broader pretzel category.”
The Hershey Co. estimated sales for the two businesses to be approximately $275 million for the 12 months ended Sept. 30, 2021. The transactions are expected to close by the end of 2021.