Lily’s will add a key better-for-you confection brand to Hershey’s portfolio of iconic chocolate and candy favourites.
The Hershey Company recently announced that it has entered into a definitive agreement to acquire US-based Lily’s, the high-growth, better-for-you (BFY) confectionery brand.
Lily’s low-sugar products include dark and milk chocolate style bars, baking chips, peanut butter cups and other confection products that fit Hershey’s multi-pronged better-for-you snacking strategy.
Lily’s will add a key better-for-you confection brand to Hershey’s portfolio of iconic chocolate and candy favourites.
BFY snacking continues to grow faster than mainstream segments across snacking categories such as potato chips, ice cream and cookies. BFY offerings, however, are still under-developed in confection and the Lily’s acquisition would enable Hershey to accelerate this growth and reimagine the future of the candy aisle in partnership with retailers.
Based today in Boulder, Colo., Lily’s traces its roots to co-founder Cynthia Tice’s decision to raise awareness about better-for-you foods by opening Center Foods, a natural foods store, in Philadelphia in 1978.
The acquisition will be financed with cash on hand as well as short-term borrowings. Lily’s acquisition is expected to be slightly accretive to earnings in the first full year post-closing. The acquisition is subject to customary regulatory approvals and is expected to close in the next few months.