The Hershey Company has entered into definitive agreements to acquire Dot’s Pretzels LLC, the owner of Dot’s Homestyle Pretzels, the fastest-growing scale brand in the pretzel category, and Pretzels Inc., a leading innovator in the pretzel category and co-manufacturer of pretzels for Dot’s Pretzels and several other customers. The total purchase price for the two proposed acquisitions is approximately $1.2 billion. Subject to customary regulatory approvals, the transactions are expected to close by the end of the year.
“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,” says The Hershey Company President and Chief Executive Officer Michele Buck. “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.”
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Based in Bluffton, Ind., Pretzels Inc. is a co-manufacturer of pretzels for Dot’s Pretzels and several other customers and is a leading innovator in the pretzel category. The acquisition of Pretzels Inc. will give Hershey deep pretzel category and product expertise and the manufacturing capabilities to support Dot’s growth and future pretzel innovation, as well as the continued growth in the entire pretzel category through Pretzels Inc.’s leading co-manufacturing capabilities.
Pretzels Inc. operates three manufacturing locations in Indiana and Kansas. When its acquisition is complete, these three manufacturing locations will be in addition to four pretzel-seasoning facilities to be acquired with Dot’s.