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HERSHEY, Pa. - The Hershey Company (NYSE:HSY) announced Wednesday it has closed its acquisition of LesserEvil, a manufacturer of organic snacks. The purchase expands Hershey's better-for-you offerings and strengthens its position in the salty snack segment. The chocolate giant, with a market capitalization of $37.1 billion according to InvestingPro data, continues to operate with a moderate level of debt as it pursues strategic acquisitions.
LesserEvil produces organic popcorn and puffs made with premium ingredients including organic, unrefined extra virgin oils. The brand's products are USDA Organic and non-GMO certified, containing no artificial dyes or preservatives.
"The addition of LesserEvil expands our portfolio of loved brands to meet growing consumer needs and occasions," said Kirk Tanner, President and CEO of The Hershey Company, in a press release statement.
Charles Cortistine, Chief Executive Officer of LesserEvil, will remain with the company along with the existing leadership team. They will continue to oversee the brand's operations, manufacturing, and commercial strategy.
The acquisition aligns with Hershey's growth strategy in the salty snack category, which the company reports grew 1.5 times faster in 2024 than in the previous three years. LesserEvil joins Hershey's expanding salty snack portfolio that includes SkinnyPop, Dot's Homestyle Pretzels, and Pirate's Booty.
Hershey, known primarily for chocolate and confectionery brands like Reese's, Kit Kat, and Jolly Rancher, has been strategically diversifying its product offerings to meet changing consumer preferences for better-for-you options and bold flavors.
The company stated that LesserEvil products will continue to be produced with the same high-quality organic ingredients and will remain available at major retailers nationwide. Financial terms of the acquisition were not disclosed.Despite the strategic acquisition, Hershey currently trades at a P/E ratio of 27.41 and appears overvalued according to InvestingPro Fair Value estimates. The company maintains a solid 3% dividend yield and has raised its dividend for 15 consecutive years. InvestingPro offers comprehensive analysis on Hershey and 1,400+ other US stocks through its detailed Pro Research Reports, transforming complex data into actionable investment intelligence.
In other recent news, Hershey reported its third-quarter 2025 earnings, surpassing analysts' expectations with an earnings per share of $1.30, compared to the forecasted $1.06. The company also reported revenue of $3.18 billion, exceeding the anticipated $3.11 billion. Organic sales increased by 6% during the quarter, aided by improved sales performance and a reduced tax rate. Stifel responded to these results by lowering its price target for Hershey to $185, citing cocoa costs, while maintaining a Hold rating. Meanwhile, RBC Capital maintained its Sector Perform rating and a $175 price target, noting that Hershey's earnings per share and organic sales beat consensus estimates. Non-seasonal consumption showed strong momentum at the beginning of October, according to RBC Capital. Despite the positive earnings report, Hershey's stock experienced a decline. These developments highlight the mixed reactions from analysts and market participants following Hershey's latest financial performance.
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