Chocolate and snack producer The Hershey Company is moving to expand its presence in the savory snacks market as it entered into an agreement Monday to acquire Austin, TX-based Amplify Snack Brands Inc., the maker of Tyrrell’s brand potato chips and SkinnyPop popcorn.
“The acquisition of Amplify and its product portfolio is an important step in our journey to becoming an innovative snacking powerhouse as together it will enable us to bring scale and category management capabilities to a key sub-segment of the warehouse snack aisle,” Hershey Company President and Chief Executive Officer Michelle Buck said in a joint press release announcing the agreement.
Hershey said Amplify’s brands, transparency in listing ingredients, and use of clean ingredients cater to growing food trends in snacking pivoting toward better-for-you products
An estimated $20 billion in run-rate synergies are expected to emerge over the next two years as a result of cost savings and portfolio optimization, the release said. The move was approved the boards of both companies.
“This transaction is a continuation of our mission as Hershey also believes in bringing to customers great-tasting snacks made with the best ingredients possible. Hershey is a great cultural partner for Amplify and I’m excited for our team,” said Tom Ennis, president and chief executive officer of Amplify, in a statement.