Hershey To Acquire Dot's Homestyle Pretzels, Pretzels Inc For ~$1.2B

Hershey Co HSY has agreed to acquire Dot's Pretzels LLC, the owner of Dot's Homestyle Pretzels, and Pretzels Inc for a total purchase price of $1.2 billion.
The estimated aggregate net sales for the two businesses were ~$275 million for the 12 months ended September 2021.
Hershey estimates the combination of these two strategic acquisitions to be slightly accretive to reported EPS in 2023 and adjusted EPS in 2022.
Hershey expects Dot's Pretzels to complement its salty snacking portfolio and create an opportunity to reach new consumers.
Dot's Pretzels was started as a special family snack by founder Dot Henke in North Dakota.
Pretzels Inc. is a co-manufacturer of pretzels for Dot's Pretzels and is owned by a private investment firm, Peak Rock Capital.
Following completion expected in the 2021-end, Pretzels Inc's three manufacturing locations in Indiana and Kansas would be in addition to four pretzel-seasoning facilities to be acquired with Dot's.
Hershey expects to finance the deal with cash on hand and short-term borrowings. It held $675.5 million in cash and equivalent as of September 30, 2021.
Price Action: HSY shares are trading higher by 1.20% at $178.30 on the last check Wednesday.