Hershey Foods Inc. (NYSE: HSY) announced plans to acquire Amplify Snack Brands Inc. for $921 million at $12 a share. The chocolate maker is looking to boost their product line in the snacks business as well as appeal to customers that are willing to pay more for snacks that claim to be healthier. Other companies such as Campbell Soup, Utz, and Herr’s also announced plans to acquire snack giants such as Snyder’s-Lance.
Since the early 1990s, Hershey got out of the salty snacks game and recently became more popular again after their release of the Gold line of salty, chocolate-free bars. Over time, business has stumbled after the company tried to stray away from the chocolates category.
Hershey is looking to pay more than 70% above Amplify’s share price. Back in 2015, Amplify first sold their shares at $18 and has declined ever since, closing below $5 for the first time last month after reporting disappointing sales and profits. As part of the deal, the chocolate maker is looking to also take about $600 million in Amiplify’s debt, which increased their shares following this announcement.