The Hershey Company (NYSE:HSY) entered into a definitive agreement to acquire Dot's Pretzels, LLC on November 10, 2021. In a related transaction, The Hershey Company also announced that it has entered into a definitive agreement to acquire Pretzels Inc., from an affiliate of Peak Rock Capital, a private investment firm with numerous investments in the food and beverage industry. The total purchase price for these two proposed acquisitions is approximately $1.2 billion, or approximately $1 billion of investment net of expected future tax benefits. It will be financed with cash on hand as well as short-term borrowings.

The estimated aggregate net sales for the two businesses were approximately $275 million for the 12 months ended September 2021. The acquisitions are subject to customary regulatory approvals and are expected to close by the end of 2021. The combination of these two strategic acquisitions is expected to be slightly accretive to adjusted earnings per share in 2022 reported earnings per share in 2023.

Houlihan Lokey acted as financial advisor to Dot's Pretzels. Saee Muzumdar of Gibson, Dunn & Crutcher LLP acted as legal advisor to The Hershey Company in the transaction.