Hershey to buy Dot's Pretzels for $1.2B
Hershey says Dot's is the fastest-growing pretzel brand in the U.S.
The Hershey Company announced Wednesday that it has agreed to acquire the company that owns Dot's Homestyle Pretzels along with a manufacturer of the snacks in a $1.2 billion deal.
The chocolate-making giant said in a press release that Dot's Pretzels "are a perfect complement to Hershey's growing salty snacking portfolio."
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"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," Hershey president and CEO Michele Buck said in a statement. "With a unique range of bold, distinctive seasonings and a flavorful crunch that creates a premium pretzel experience for consumers, Dot's Pretzels stand apart from all other products in the pretzel category and represents 55 percent of the pretzel category's growth during the past year."
The deal involves the purchase of Dot's Pretzels LLC, which owns the brand, and Pretzels Inc., a company that operates three manufacturing facilities and makes Dot's Pretzels along with other products. The estimated aggregate net sales for the two companies were around $275 million for the the 12 months ended Sept. 2021.
Dot's Pretzels was founded by Dot Henke in North Dakota more than a decade ago, after her homemade pretzels became popular with her friends and family.
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"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 in a statement announcing the sale. "With Hershey behind this amazing brand, I am confident that anyone who would like to enjoy these deliciously bold pretzels will have the opportunity."