HERSHEY, Pa., and PARSIPPANY, N.J. -- The Hershey Co. has finalized its acquisition of Pirate Brands, the maker of Pirate’s Booty, from holding company B&G Foods Inc. The candy and snack maker agreed to purchase B&G Foods in September for $420 million, approximately $360 million net of tax benefits.
The deal builds on the flurry of CPG acquisitions in 2018 by companies such as The Ferrero Group, Kellogg Co., Campbell Soup Co. and others.
“We are thrilled to have the fast-growing Pirate’s Booty brand as part of the Hershey product portfolio,” said Mary Beth West, chief growth officer of Hershey. “More and more consumers are seeking great-tasting snacks with clean labels and no artificial flavors, colors or preservatives, and Pirate’s Booty fits this need. We are looking forward to growing the full Pirate Brands portfolio in the years to come.”
Pirate Brands will operate under Amplify, Hershey’s better-for-you snacking division that it acquired in December 2017, in its Austin, Texas, hub. This segment focuses on sparking growth in the warehouse snacking aisle through unique product flavors and forms, such as Skinny Pop, Paqui and Oatmega, according to Hershey.
At the time of the acquisition, Hershey said it expects the deal to accelerate its financial goals, considering Pirate’s Booty has seen an 8% annual increase in retail sales. Additionally, the puffy-snack brand also targets consumers seeking snacks with clean labels and that are free of artificial additives.
Parsippany, N.J.-based B&G Foods manufactures, sells and distributes branded foods in the United States, Canada and Puerto Rico. The company’s portfolio features more than 50 brands, including Back to Nature, B&G, B&M, Cream of Wheat, Green Giant, Las Palmas, Le Sueur, Mama Mary’s, Maple Grove Farms, Mrs. Dash, New York Style, Ortega, Polaner, SnackWell’s and Spice Islands.
Hershey, based in Hershey, Pa., has more than 80 brands that drive more than $7.4 billion in annual revenues, including Hershey's, Reese's, Hershey's Kisses, Jolly Rancher, Ice Breakers and Brookside.