HERSHEY, PA. — The Hershey Co. on Dec. 14 completed its acquisition of Dot’s Pretzels, the owner of Dot’s Homestyle Pretzels, and Pretzels Inc., a co-manufacturer of pretzels for Dot’s Pretzels and others. The combined purchase price was $1.2 billion, or approximately $1 billion of investment net of expected future tax benefits, the company said.
The transaction was first announced on Nov. 10.
Hershey said it expects the addition of Dot’s Pretzels to accelerate its “snacking powerhouse vision” by adding to its portfolio the fastest-growing scale US pretzel brand, representing 55% of the pretzel category’s growth during the past year.
Meanwhile, the acquisition of Pretzels Inc. brings the pretzel manufacturing capability in-house, a strategy that Hershey said ensures the continued growth of Dot’s and expertise to drive future snacking innovations.
Hershey said it plans to take a phased approach to integrate the businesses in partnership with Dot’s and Pretzels Inc.’s leadership teams as it focuses on continued growth of both businesses.
Headquartered in Fargo, ND, Dot’s Pretzels operates four manufacturing plants located in Goodyear, Ariz.; Velva, ND; Edgerton, Kan.; and Lenexa, Kan. Dot’s invested $15 million to open the Edgerton facility — its largest manufacturing plant — last year.
Dot’s Pretzels’ portfolio includes seasoned pretzel twists sold in a variety of package sizes, including personal size (1.5 oz), snack size (5 oz), family size (16 oz) and party size (32 oz). The company also offers Pretzel Crumble, which comes in a 10-oz bag and may be used as a breading or topping for a variety of food items.
Founded in 1978 and headquartered in Bluffton, Ind., Pretzels Inc. operates three manufacturing plants located in Bluffton and Plymouth, Ind., and Lawrence, Kan. The 150,000-square-foot facility in Lawrence recently became operational and comes on the heels of a 120,000-square-foot expansion that took place earlier this year at the Plymouth plant. The company manufactures and distributes traditional, peanut butter filled, flavored, seasonal, and gluten-free pretzels, as well as extruded snack products, to a diverse customer base that includes leading grocers and national brands.