The Hershey Company announced it intends to purchase Dot’s Pretzels from an affiliate of Peak Rock Capital. The acquisition adds Dot’s Homestyle Pretzels to Hershey’s growing salty snacking portfolio. The total purchase price for these two proposed acquisitions is approximately USD1.2 billion, or approximately USD1 billion of investment net of expected future tax benefits. The acquisitions are subject to customary regulatory approvals and are expected to close by the end of 2021.
Based in Bluffton, Indiana, Pretzels Inc. operates three manufacturing locations in Indiana and Kansas. When the transactions are completed, these three manufacturing locations would be in addition to four pretzel-seasoning facilities to be acquired with Dot’s. The acquisition of Pretzels Inc. would give Hershey deep pretzel category and product expertise and the manufacturing capabilities to support Dot’s growth and future pretzel innovation.
“As the fastest growing U.S. 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 Buck, The Hershey Company president and chief executive officer. “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.”