Hershey To Buy Amplify Snack Brands In $1.6 Bln Deal

20-Dec-2017 - USA

Hershey Co. (HSY) said that it agreed to buy Amplify Snack brands Inc. (BETR) for $12.00 per share in cash.

The agreement has been approved by the Boards of Directors of both companies. Affiliates of TA Associates, Amplify's largest stockholder, and key Amplify insiders, who collectively represent approximately 57% of the outstanding shares, have agreed to tender their shares in the transaction.

As per the terms of the, Hershey has agreed to acquire all of the outstanding shares of Amplify Snack Brands, Inc. for $12.00 per share, in a transaction structured as a tender offer followed by a merger, valued at approximately $1.6 billion, including net debt and including a make-whole payment of $76 million related to the Tax Receivable Agreement.

Hershey expects the transaction to be accretive to adjusted earnings per share-diluted, including transaction related non-cash amortization, in the first-year post closing with accretion increasing in year two. Adjusted earnings per share-diluted accretion in both years is substantially higher when excluding transaction related amortization. The acquisition is not expected to affect the previously announced full year 2017 outlooks provided in Hershey's and Amplify's third quarter earnings.

Based on previously announced guidance, this represents a multiple of approximately 14.8-times 2017 Adjusted EBITDA including identified annual run-rate synergies of approximately $20 million expected to be generated over the next two years from cost savings and portfolio optimization.

The transaction will be funded with cash on hand and new debt and is not expected to impact Hershey's current ratings.

The transaction is subject to Amplify's stockholders tendering a majority of Amplify's outstanding shares on a fully diluted basis prior to the expiration of the tender offer, certain regulatory approvals and other customary conditions, and is expected to close in the first quarter of 2018. (dpa)

https://www.yumda.com/en/news/1152660/hershey-to-buy-amplify-snack-brands-in-1-6-bln-deal.html