The Hershey Company (NYSE:HSY) and Amplify Snack Brands, Inc. (NYSE:BETR) both saw stocks gain ground – climbing an elevator in the latter case, after cementing their definitive agreement under which Hershey will acquire all outstanding shares of Amplify for $12.00 per share in cash.
Hershey CEO Michele Buck "The acquisition of Amplify and its product portfolio is an important step in our journey to becoming an innovative snacking powerhouse as together it will enable us to bring scale and category management capabilities to a key sub-segment of the warehouse snack aisle."
According to Amplify CEO Tom Ennis, “This transaction is a continuation of our mission as Hershey also believes in bringing to consumers great-tasting snacks made with the best ingredients possible. 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.”
Amplify’s brands compete in many attractive food categories that are capitalizing on fast-growing trends in snacking with a focus on better-for-you products that deliver clean, simple and transparent ingredients as well as unique flavors and forms.
The deal is valued at approximately $1.6 billion, including net debt and including a make-whole payment of $76 million related to the Tax Receivable Agreement. Based on previously announced guidance, this represents a multiple of approximately 14.8-times 2017 Adjusted EBITDA.
Hershey stock took on 39 cents to $114.53, while Amplify’s shares went through the roof, gaining $5.01, or 71.6%, to $12.01.
