Hershey acquires iconic Canadian confectionery manufacturer Allan Candy Company
Posted: 9 December 2014 | The Hershey Company | No comments yet
The Hershey Company, a global confectionery leader known for bringing goodness to the world through its delicious chocolate, sweets, mints, beverages and snacks, announced that it has completed the purchase of The Allan Candy Company, a leading North American manufacturer of quality confectionery products based in Ontario, Canada…
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.