Hershey completes acquisition of Pirate Brands for $420m

US-based food snacks manufacturer The Hershey Company has purchased Pirate Brands from B&G Foods for $420m.

Hershey acquired various Pirate brands including Pirate’s Booty, Smart Puffs and Original Tings.

The Hershey Company chief growth officer Mary Beth West said: “We are thrilled to have the fast-growing Pirate’s Booty brand as part of the Hershey product portfolio.

“More and more consumers are seeking great-tasting snacks with clean labels and no artificial flavours, colours 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.”

B&G Foods signed a definitive agreement with Hershey in regard to the sale of Pirate Brands business.

At the time of signing the agreement, B&G Foods president and CEO Robert Cantwell said: “Pirate Brands is a terrific business that has performed very well for us and we believe it will continue to thrive under the ownership of The Hershey Company.

“The transaction we are announcing today is a great example of our ability to create meaningful shareholder value through accretive M&A by acquiring and investing in on-trend food brands.”

Pirate Brands was acquired by B&G Foods in 2013 for approximately $195m.

B&G Foods noted that it intends to use the sale proceeds for repaying long-term debt and possible acquisitions.

Hershey has more than 80 brands worldwide that annually drive more than $7.5bn in revenues.

They include Hershey’s, Reese’s, Kit Kat, Jolly Rancher, Ice Breakers and SkinnyPop.