Hershey Co. announced it has entered into a definitive agreement to buy Dot's Pretzels LLC, owner of Dot's Homestyle Pretzels.
Simultaneously, Hershey has entered into a definitive agreement to acquire Pretzels Inc. from an affiliate of Peak Rock Capital, a private investment firm. Bluffton, IN-based Pretzels Inc. is a co-manufacturer of pretzels for Dot's and several other customers. The co-producer operates three manufacturing locations in Indiana and Kansas.
The total purchase price for both proposed acquisitions is about $1.2 billion, or $1 billion of investment net of expected future tax benefits
Reportedly the fastest-growing scale brand in the pretzel category, Dot's Pretzels will complement Hershey's growing salty snacking portfolio and would create an opportunity to reach new consumers in new occasions, advancing Hershey's snacking powerhouse vision.
"As the fastest growing U.S. pretzel brand, Dot's Pretzels would further accelerate our success in the permissible salty snack category, along with our successful SkinnyPop and Pirate's Booty brands," said Hershey Co. president and chief executive Michele Buck.
Created more than a decade ago in North Dakota by Dorothy "Dot" Henke in her home kitchen, Dot's Pretzels started as a special family snack that she shared with family, friends and neighbors to get through long, cold North Dakota winters.
"I created my pretzels to share with those people closest to me and have built the business with the idea of sharing them with everyone," Henke said. "With Hershey behind this amazing brand, I am confident that anyone who would like to enjoy these deliciously bold pretzels will have the opportunity."