Hershey, Pennsylvania-based Hershey Company announced Tuesday that it had completed its acquisition of Dot’s Pretzels, and Pretzels Inc.
Dot’s Pretzels is the owner of Dot’s Homestyle Pretzels, while Pretzels Inc. is a leading manufacturer of pretzels in the U.S. According to Hershey, the combined purchase price of the two companies was $1.2 billion. The company had previously said that was approximately $1 billion of investment net of future tax benefits.
According to Hershey, adding Dot’s Pretzels will accelerate the companies snacking vision by adding the fastest-growing U.S. pretzel brand to its portfolio. Dot’s Pretzels represents 55 percent of the pretzel category’s growth during the past year.
Additionally, the company said, the acquisition of Pretzels Inc. would bring the capability to manufacture pretzels in-house which would ensure Dot’s continued growth, while providing Hershey with the expertise to drive snacking innovation in the future.
Hershey said it would take a phased approach to integrating the businesses and would work with Dot’s and Pretzels Inc.’s leadership teams to grow both businesses.
Industry-leading snack company Hershey has approximately 17,000 employees around the world, and generates more than $8.1 billion in annual sales.
According to Dunn and Bradstreet, Dot’s Pretzels, headquartered in North Dakota, has 175 employees and generates an estimated $69 million in sales. Pretzels Inc., located in Indiana, has 45 employees and generates $15.95 million in sales.