Leading chocolate brand The Hershey Co. has entered into a definitive agreement to acquire a private label pretzel company.
As part of its deal to acquire Dots Pretzels, the maker of Dot’s Homestyle Pretzels, Hershey acquired Pretzels Inc., an affiliate of Peak Rock Capital, a private investment firm with a number of investments in the food and beverage industry. Pretzels Inc. is a co-manufacturer of pretzels for Dot's Pretzels and several other customers.
The total purchase price for the two proposed acquisitions is approximately $1.2 billion, or approximately $1 billion of investment net of expected future tax benefits. It will be financed with cash on hand as well as short-term borrowings.