MISSISSAUGA, Ontario--(BUSINESS WIRE)--The Hershey Company:
- Extends Hershey’s Sweets & Refreshment manufacturing capacity in North America
- Adds famous Canadian confectionery brands to the Hershey portfolio
The Hershey Company (NYSE: HSY), a global confectionery leader known for bringing goodness to the world through its delicious chocolate, sweets, mints, beverages and snacks, announced today that it has completed the purchase of The Allan Candy Company, a leading North American manufacturer of quality confectionery products based in Ontario, Canada.
Allan Candy is well known across Canada for its iconic confectionery brands, including 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 & 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, Global Sweets & Refreshment. “Allan has been a long-standing sweets manufacturing partner that will strengthen our sales and profit performance.”
The acquisition of Allan Candy builds on The Hershey Company’s long-standing business in Canada and its commitment to the Canadian market. In 2011, The Hershey Company 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 sq. ft. facility located in Granby, Canada, which is part of the acquisition. Hershey’s operations in Canada now total approximately 900 employees across the country who work in the company’s second largest sales market in the world.
“The acquisition of Allan Candy extends Hershey’s ability to serve consumers across Canada by adding a number of iconic Canadian confectionery brands to our portfolio,” said Rohit Grover, Vice President Hershey Canada. “We are delighted to welcome Allan Candy to Hershey and continue working with them to make great-tasting, high-quality products for The Hershey Company as well as their popular branded products.”
Hershey previously announced during its third-quarter conference call and in its 10-Q filed on September 28, 2014, that it had signed a purchase agreement with Allan. The acquisition will not affect Hershey’s previously announced adjusted earnings per share-diluted outlook for 2014 provided on October 29, 2014.
About The Hershey Company
The Hershey Company (NYSE: HSY), headquartered in Hershey, Pa., is a global confectionery leader known for bringing goodness to the world through its chocolate, sweets, mints and other great-tasting snacks. Hershey has approximately 13,000 employees around the world who work every day to deliver delicious, quality products. The company, which has more than 80 brands around the world that drive over $7.1 billion in annual revenues, includes such iconic brand names as Hershey's, Reese's, Hershey's Kisses, Twizzlers and Ice Breakers. Hershey is focused on growing its presence in key international markets while continuing to build its competitive advantage in North America. Additionally, Hershey is poised to expand its portfolio into categories beyond confectionery, finding new ways to bring goodness to people everywhere.
At Hershey, goodness has always been about more than delicious products. For 120 years, Hershey has been committed to good business by operating fairly, ethically and sustainably to make a positive impact on society. This means contributing to a better life for its employees, consumers, communities, and, ultimately, creating a bright future for children in need. This commitment is exemplified by the Milton Hershey School, established in 1909 by the company's founder and administered by Hershey Trust Company. The children who attend the school receive education, housing, and medical care at no cost — thriving as direct beneficiaries of The Hershey Company's success.
About The Allan Candy Company
With approximately 400 employees worldwide, The Allan Candy Company Limited is a leading North American manufacturer of quality sugar confectionery and chocolate products. The Allan Candy name, along with its trademark logo, is widely recognized in the Canadian confectionery marketplace and is known as a quality manufacturer of confectionery products in Canada. Allan Candy’s product portfolio includes soft and hard candies such as gummies, jujubes, gum drops, toffees, mints and candy canes, as well as a range of solid and hollow novelty chocolate.
Safe Harbor Statement
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Many of these forward-looking statements can be identified by the use of words such as “intend,” “believe,” “expect,” “anticipate,” “should,” “planned,” “projected,” “estimated,” and “potential,” among others. These statements are made based upon current expectations that are subject to risk and uncertainty. Because actual results may differ materially from those contained in the forward-looking statements, you should not place undue reliance on the forward-looking statements when deciding whether to buy, sell or hold the company's securities. Factors that could cause results to differ materially include, but are not limited to: issues or concerns related to the quality and safety of our products, ingredients or packaging; changes in raw material and other costs; selling price increases, including volume declines associated with pricing elasticity; market demand for our new and existing products; increased marketplace competition; disruption to our manufacturing operations or supply chain; failure to successfully execute and integrate acquisitions, divestitures and joint ventures; changes in governmental laws and regulations, including taxes; political, economic, and/or financial market conditions; risks and uncertainties related to our international operations; disruptions, failures or security breaches of our information technology infrastructure; the impact of future developments related to civil antitrust lawsuits and the possible investigation by government regulators of alleged pricing practices by members of the confectionery industry in the United States; and such other matters as discussed in our Annual Report on Form 10-K for the year ended December 31, 2013. All information in this press release is as of December 4, 2014. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company's expectations.
