The Hershey Company Announces Intent to Acquire LesserEvil
Rhea-AI Summary
The Hershey Company (NYSE: HSY) has announced a definitive agreement to acquire LesserEvil, a manufacturer of organic snacks. This strategic acquisition aims to expand Hershey's snacking portfolio beyond its traditional confection brands like Hershey's, Reese's, and Jolly Ranchers, and complement its salty snack brands including SkinnyPop, Dot's Homestyle Pretzels, and Pirate's Booty.
LesserEvil's current leadership team will remain to manage its commercial operations and manufacturing facilities. The acquisition is expected to enhance Hershey's market presence in the better-for-you snack segment, focusing on organic ingredients and bold flavors. The transaction, subject to regulatory approval, is anticipated to close later in 2025.
Positive
- Strategic expansion into growing better-for-you snack segment
- Additional manufacturing capabilities and capacity acquired
- Retention of experienced LesserEvil management team
- Cross-category expansion potential
Negative
- Regulatory approval pending with execution risk
- Integration costs and challenges ahead
- Purchase price not disclosed
News Market Reaction 1 Alert
On the day this news was published, HSY gained 1.76%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
"Investing in LesserEvil brings a multi-category, better-for-you snacks platform to extend our offerings into new categories and forms, reaching new consumers in more eating occasions," said Michele Buck, The Hershey Company President and Chief Executive Officer. "This high-growth brand not only complements our beloved confection and salty snack brands but also brings additional manufacturing capabilities and capacity to meet growing consumer and retailer needs."
LesserEvil is growing as a cross-category snack brand for those who desire interesting and bold flavors with organic ingredients. Its leadership team will continue with the company to lead its innovative commercial model, speed-to-market capabilities and manufacturing operations. Working together, the team aims to deliver category-leading growth and elevated category insights to offer the right products, in the right places and at the right time for consumers.
"LesserEvil has always been built on a foundation of clear purpose, constant innovation, and a deep commitment to our people—fostering a vibrant culture rooted in mindfulness and better-for-you snacking using organic ingredients," remarked Charles Coristine, Chief Executive Officer, LesserEvil. "Joining a company that shares our passion for responsible business, giving to a cause greater than oneself, and long-term vision makes this an incredible opportunity for our brand and our team.
The transaction remains subject to regulatory approval with anticipated closing later this year.
Safe Harbor Statement
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Many of these forward-looking statements can be identified by the use of words such as "anticipate," "assume," "believe," "continue," "estimate," "expect," "forecast," "future," "intend," "plan," "potential," "predict," "project," "strategy," "target" and similar terms, and future or conditional tense verbs like "could," "may," "might," "should," "will" and "would," among others. These statements are made based upon current expectations that are subject to risk and uncertainty. Because actual results may differ materially from those contained in the forward-looking statements, you should not place undue reliance on the forward-looking statements when deciding whether to buy, sell or hold the company's securities. Factors that could cause results to differ materially include, but are not limited to: the ability to timely satisfy the conditions to the closing the transactions contemplated in the definitive agreement; our ability to realize the benefits of the transaction; risks related to the impact of the coronavirus global pandemic ("COVID-19") on our business, suppliers, distributors, consumers, customers, and employees; the scope and duration of the pandemic; government actions and restrictive measures implemented in response to the pandemic, including the distribution of vaccinations and continuation of social distancing guidelines and stay at home orders; disruptions or inefficiencies in our supply chain due to the loss or disruption of essential manufacturing or supply elements or other factors; issues or concerns related to the quality and safety of our products, ingredients or packaging, human and workplace rights, and other environmental, social or governance matters; changes in raw material and other costs, along with the availability of adequate supplies of raw materials; the company's ability to successfully execute business continuity plans to address the COVID-19 pandemic and resulting changes in consumer preferences and the broader economic and operating environment; selling price increases, including volume declines associated with pricing elasticity; market demand for our new and existing products; increased marketplace competition; failure to successfully execute and integrate acquisitions, divestitures and joint ventures; changes in governmental laws and regulations, including taxes; political, economic, and/or financial market conditions; risks and uncertainties related to our international operations; disruptions, failures or security breaches of our information technology infrastructure; our ability to hire, engage and retain a talented global workforce, our ability to realize expected cost savings and operating efficiencies associated with strategic initiatives or restructuring programs; complications with the design or implementation of our new enterprise resource planning system; and such other matters as discussed in our Annual Report on Form 10-K for the year ended December 31, 2024. All information in this press release is as of April 3, 2025. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company's expectations.
About The Hershey Company
The Hershey Company (NYSE: HSY) is an industry-leading snacks company with a purpose to make more moments of goodness through its iconic brands. With more than 20,000 remarkable employees worldwide,
For more than 130 years,
To learn more visit www.thehersheycompany.com.
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SOURCE The Hershey Company
FAQ
When will Hershey (HSY) complete the LesserEvil acquisition?
What brands will HSY add through the LesserEvil acquisition?
Will LesserEvil's management team stay after Hershey's acquisition?
How does the LesserEvil acquisition fit into HSY's portfolio strategy?
