Allan Candy is known across Canada for such confectionery brands as Allan, Big Foot, Hot Lips and Laces.

HERSHEY, PA. — The Hershey Co. is ramping up its presence in the North American candy category with the announcement it has completed the purchase of Ontario-based The Allan Candy Co. Hershey’s wholly-owned subsidiary, Hershey Canada Inc., in October entered into an agreement to acquire all of the outstanding shares of Allan for cash consideration of approximately $28 million.

Founded in 1927, Allan Candy is known across Canada for such confectionery brands as Allan, Big Foot, Hot Lips and Laces. Allan Candy is also a leader in the Canadian Easter novelty chocolate segment and the Canadian candy cane market. More than half of Allan Candy’s current manufacturing capacity is used to make Hershey sweets and refreshment products such as Jolly Rancher hard candy and Lancaster caramels for North America.

“The addition of Allan Candy’s high-quality manufacturing capabilities and confectionery portfolio greatly enhances our North American business,” said Steven Schiller, senior vice-president of global sweets and refreshment at Hershey. “Allan has been a long-standing sweets manufacturing partner that will strengthen our sales and profit performance.”

The acquisition of Allan Candy continues Hershey’s commitment to the Canadian market. In 2011, Hershey acquired British Columbia-based Brookside, which today is its sixth global brand alongside Hershey’s, Kisses, Reese’s, Jolly Rancher and Ice Breakers. With the purchase of Allan, Hershey operates three confectionery manufacturing facilities in Canada, including Allan Candy’s 170,000-square-foot facility in Granby, Que.