USA: Hershey to acquire Nabisco's intense and breath freshener mints and gum businesses
Hershey Foods Corporation (NYSE: HSY), the leading North American confectionery company, has entered into an agreement with Nabisco, Inc. to acquire Nabisco's intense and breath freshener mints and gum businesses, which had 1999 sales of approximately $270 million.Under the agreement, Hershey will pay $135 million to acquire the businesses, including Ice Breakers and Breath Savers Cool Blasts intense mints, Breath Savers mints, and Ice Breakers, Care*free, Stick*free, Bubble Yum and Fruit Stripe gums. Also included in the purchase is Nabisco's gum- manufacturing plant in Las Piedras, Puerto Rico.The purchase of these businesses by Hershey is conditional upon consummation of the acquisition of Nabisco Holdings Corp. by Philip Morris Companies Inc. (which is subject to Federal Trade Commission approval) and FTC approval of the sale of these businesses to Hershey, as well as other customary closing conditions. The parties expect to complete the transaction by the end of the year.Following completion, the newly acquired businesses are expected to be immediately accretive to Hershey's earnings per share."We are excited about the acquisition of these brands from Nabisco," said Kenneth L. Wolfe, Chairman and Chief Executive Officer, Hershey Foods Corporation. "Ice Breakers and Cool Blasts have great consumer appeal and are strong players in the fast-growing mini- and full-size intense mint product lines. The gum brands are well-established players covering the breath- freshening, adult and kid/teen product lines and will make nice additions to our existing Rain Blo and Super Bubble brands."Hershey Foods Corporation is the leading North American manufacturer of quality chocolate and non-chocolate confectionery and chocolate-related grocery products and has a variety of international operations.
Get full access to all content, just $1 for 30 days
A Message From The Editor
just-food gives you the widest food market coverage.
Paid just-food members have unlimited access to all our exclusive content - including 16 years of archives.
I am so confident you will love complete access to our content that today I can offer you 30 days access for $1.
It’s our best ever membership offer – just for you.
Dean Best, editor of just-food
- Unilever 2016 investor day - the top takeaways
- The key questions for digital strategists in 2017
- Wessanen's move for Spain's Biogran - analysis
- Burger King, Jollibee: foodservice focus, Nov 2016
- Have food promotions reached tipping point?
- General Mills jobs to go in business revamp
- Verlinvest, China Resources invest in Oatly
- B&G acquires pasta sauce group Victoria Fine Foods
- Japan's Nagatanien buys Chaucer Food Group
- Tyson sets up US$150m investment fund