Jefferies Group set a $10.00 price objective on shares of Amplify Snack Brands and gave the stock a "buy" rating in a research note on Monday, October 30th.
Hershey has been pouring money to add brands such as Krave meat jerky and Ripple Brand Collective's barkTHINS to its cache as Americans cut back on sugary foods and in turn prefer protein-rich snacks.
Just over a year ago, The U.S. candy maker had spurned a $107 per share takeover offer from Mondelez. "Hershey is a great cultural partner for Amplify and I'm excited for our team who will have access to Hershey's marketing and go-to-market resources to take our brands to the next level". Get your FREE trial or subscribe now.
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Hershey will fund the transaction with cash on hand, along with some new debt.
Amplify Snack owns brands such as SkinnyPop popcorn and Paqui chips which claim to have no artificial ingredients or transfats and come in dairy-free cheese and naturally sweet flavors that are popular among millennial consumers.
Amplify's shares were trading at $12.03, while those of Hershey were unchanged in premarket trading. "Hershey's snack mix and meat snacks products, combined with Amplify's SkinnyPop, Tyrrell's, Oatmega, Paqui and other worldwide brands, will allow us to capture more consumer snacking occasions by creating a broader portfolio of brands", said Michele Buck, The Hershey Company President and Chief Executive Officer. Year-to-date, HSY has gained 12.96%, versus a 20.93% rise in the benchmark S&P 500 index during the same period.