Hershey Completes Acquisition of Lily's Confectionery Brand

Rhea-AI Summary

The Hershey Company (NYSE: HSY) has completed its acquisition of Lily's, a leading maker of low-sugar confectionery products, for $425 million. This strategic move is aimed at enhancing Hershey's portfolio in the better-for-you snacking segment. The acquisition aligns with Hershey's multi-pronged strategy to meet growing consumer demand for healthier options. Lily's has expanded its offerings significantly since its inception, reflecting its strong market presence.

Positive

• Acquisition of Lily's enhances Hershey's portfolio in the better-for-you snacking segment.
• The $425 million acquisition is expected to drive revenue growth.
• Lily's aligns with Hershey's strategy to expand healthier product offerings.

Negative

• None.

HERSHEY, Pa., June 25, 2021 /PRNewswire/ -- The Hershey Company (NYSE: HSY) today announced the completion of its acquisition of Lily's, the high-growth maker of low-sugar, better-for-you (BFY) confectionery products, for a purchase price of $425 million.

"Lily's is a great addition to Hershey's growing portfolio of better-for-you snacking brands, and we are excited to add this high-growth, leading BFY brand and to get to work with its talented and innovative team," said Chuck Raup, President U.S. "Lily's popular low-sugar products are a great strategic fit with our multi-pronged better-for-you snacking strategy and will perfectly complement our existing iconic Hershey's BFY offerings."

Lily's mission is to offer consumers a range of great tasting, low sugar treats. Launched with four chocolate-style bars nationally in Whole Foods Market, today the expanded line of bars, baking chips and other confections can be found across the country at key retailers. 

Safe Harbor Statement

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Many of these forward-looking statements can be identified by the use of words such as "anticipate," "assume," "believe," "continue," "estimate," "expect," "forecast," "future," "intend," "plan," "potential," "predict," "project," "strategy," "target" and similar terms, and future or conditional tense verbs like "could," "may," "might," "should," "will" and "would," among others. These statements are made based upon current expectations that are subject to risk and uncertainty. Because actual results may differ materially from those contained in the forward-looking statements, you should not place undue reliance on the forward-looking statements when deciding whether to buy, sell or hold the company's securities. Factors that could cause results to differ materially include, but are not limited to: the ability to timely satisfy the conditions to the closing the transactions contemplated in the definitive agreement; our ability to realize the benefits of the transaction; risks related to the impact of the coronavirus global pandemic ("COVID-19") on our business, suppliers, distributors, consumers, customers, and employees; the scope and duration of the pandemic; government actions and restrictive measures implemented in response to the pandemic, including the distribution of vaccinations and continuation of social distancing guidelines and stay at home orders; disruptions or inefficiencies in our supply chain due to the loss or disruption of essential manufacturing or supply elements or other factors; issues or concerns related to the quality and safety of our products, ingredients or packaging, human and workplace rights, and other environmental, social or governance matters; changes in raw material and other costs, along with the availability of adequate supplies of raw materials; the company's ability to successfully execute business continuity plans to address the COVID-19 pandemic and resulting changes in consumer preferences and the broader economic and operating environment; selling price increases, including volume declines associated with pricing elasticity; market demand for our new and existing products; increased marketplace competition; failure to successfully execute and integrate acquisitions, divestitures and joint ventures; changes in governmental laws and regulations, including taxes; political, economic, and/or financial market conditions; risks and uncertainties related to our international operations; disruptions, failures or security breaches of our information technology infrastructure; our ability to hire, engage and retain a talented global workforce, our ability to realize expected cost savings and operating efficiencies associated with strategic initiatives or restructuring programs; complications with the design or implementation of our new enterprise resource planning system; and such other matters as discussed in our Annual Report on Form 10-K for the year ended December 31, 2020. All information in this press release is as of June 25, 2021. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company's expectations.

About The Hershey Company

The Hershey Company is headquartered in Hershey, Pa., and is an industry-leading snacks company known for bringing goodness to the world through its iconic brands, remarkable people and enduring commitment to help children succeed. Hershey has approximately 17,000 employees around the world who work every day to deliver delicious, quality products. The company has more than 90 brands around the world that drive more than $8 billion in annual revenues, including such iconic brand names as Hershey's, Reese's, Kit Kat®, Jolly Rancher, Ice Breakers, SkinnyPop, and Pirate's Booty.

For more than 125 years, Hershey has been committed to operating fairly, ethically and sustainably.  Hershey founder, Milton Hershey, created the Milton Hershey School in 1909 and since then the company has focused on helping children succeed.

To learn more visit www.thehersheycompany.com. 

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SOURCE The Hershey Company

FAQ

What is the significance of Hershey's acquisition of Lily's?

The acquisition strengthens Hershey's position in the growing market for better-for-you snacks and is expected to enhance revenue from healthier product offerings.

How much did Hershey pay for the acquisition of Lily's?

Hershey acquired Lily's for a total purchase price of $425 million.

When was the acquisition of Lily's completed?

The acquisition of Lily's by Hershey was completed on June 25, 2021.

What products does Lily's offer?

Lily's offers a range of low-sugar confectionery products, including chocolate-style bars and baking chips.

How does the acquisition affect Hershey's business strategy?

The acquisition complements Hershey's multi-pronged better-for-you snacking strategy, enhancing its product offerings and market reach.