Benzinga | Nov 10, 2021 02:06PM EST

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

* Hershey Co (NYSE: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.