Hershey to acquire organic snack maker LesserEvil

Published 03/04/2025, 16:50
Hershey to acquire organic snack maker LesserEvil

HERSHEY, Pa. - The Hershey Company (NYSE: HSY), currently valued at $33.2 billion in market capitalization, has announced its plans to purchase LesserEvil, an organic snack producer known for its health-conscious offerings, as part of an effort to expand its snacking portfolio. The acquisition, unveiled today, is set to complement Hershey’s current confectionery and salty snack brands and add new manufacturing capabilities.

LesserEvil, which has carved a niche for itself with organic, boldly flavored snacks, will join Hershey’s existing lineup, including names like Reese’s and SkinnyPop. Hershey’s President and CEO Michele Buck emphasized that the acquisition would help the company reach new consumers and satisfy their diverse snacking needs.

Charles Coristine, CEO of LesserEvil, noted the shared values between the two companies, particularly in responsible business practices and innovation. He expressed optimism about the future growth and impact of LesserEvil under Hershey’s century-long legacy.

While the financial terms of the deal were not disclosed, the transaction is subject to regulatory approvals and is expected to close later in the year. According to InvestingPro data, Hershey maintains a strong financial position with healthy cash flows and operates with a moderate debt level, suggesting capacity for strategic acquisitions. For deeper insights into Hershey’s acquisition potential and financial health, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

This move by Hershey is part of a broader industry trend where traditional confectioners diversify their offerings to include healthier options. It reflects changing consumer preferences towards snacks with better-for-you ingredients.

The Hershey Company, with its extensive portfolio of brands, has been a major player in the snacks industry, generating over $11.2 billion in annual revenues and operating in approximately 70 countries. The company boasts impressive fundamentals, including a 47.4% gross profit margin and has maintained dividend payments for 55 consecutive years, with a current dividend yield of 3.3%. InvestingPro analysis reveals 8 additional key insights about Hershey’s financial health and market position, available to subscribers.

The information for this article is based on a press release statement from The Hershey Company.

In other recent news, Hershey is reportedly close to acquiring LesserEvil, a popcorn brand, for approximately $750 million. This potential acquisition aligns with Hershey’s strategy to diversify its product portfolio into healthier snack options. In addition, Hershey announced the appointment of Stacy Taffet as its new Chief Growth Officer, effective April 2025. Taffet brings significant experience from her previous role at PepsiCo, where she was Senior Vice President of Beverage Portfolio Strategy and Marketing.

On the analyst front, Piper Sandler maintained an Underweight rating on Hershey, with a price target of $120, citing concerns over cocoa costs and a slowdown in U.S. retail momentum. Meanwhile, Morgan Stanley initiated coverage with an Equalweight rating and a $183 price target, noting potential top-line growth but cautioning about cocoa price volatility. Hershey also amended its bylaws to adopt a majority voting standard for board elections, enhancing its corporate governance practices. These developments reflect Hershey’s efforts to strengthen its market position and address challenges in a dynamic business environment.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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