Hershey Co. said it has entered into a definitive agreement to acquire Lily's Sweets LLC, a high-growth, better-for-you (BFY) confectionery brand.
Financial terms of the deal, expected to close in a few months, weren’t disclosed. The acquisition will be financed with cash on hand as well as short-term borrowings, Hershey said.
Lily's low-sugar products include dark and milk chocolate style bars, baking chips, peanut butter cups and other confection products that match Hershey's multi-pronged BFY snacking strategy.
Hershey said Lily's will add a key better-for-you confection brand to its portfolio of iconic chocolate and candy favorites.
"Hershey is focused on developing a BFY confection portfolio that offers a variety of choices to meet the evolving needs of our consumers," said Hershey U.S. president Chuck Raup. "Lily's is a great strategic complement to our existing offerings in this growing segment of the confection category."
Based in Boulder, CO, today, Lily's traces its roots to cofounder Cynthia Tice's decision to raise awareness about better-for-you foods by opening Center Foods, a natural foods store in Philadelphia, in 1978. In 2012, Tice launched four Lily's chocolate-style bars nationally in Whole Foods Market.