Following speculation that Hershey are among several US companies who have submitted an initial bid for Nestlé’s US chocolate and candy business, the company have refused to comment on the rumour.
CNBC reported that Hershey and Ferrara Candy were very interested in purchasing the business, to the point that both were among the bidders.
Sticking in line with Hershey’s stance of keeping quiet, Nestlé refused to get drawn on the matter, and claimed: ”It is premature to speculate about specific outcomes of the ongoing strategic review.”
Nestlé, a globally renowned company, have a huge US confectionary unit which manufactures brands such as Laffy Taffy, Baby Ruth, Sno-Caps and Butterfinger, while generating annual revenues of $924m. However, despite this, the company has been seeking a sale of the unit for as much as $2.5bn as a result of its low market share in the US.
CNBC were told by sources that the bidding process is kept confidential, as companies “often make initial bids without submitting a final offer.”
Michele Buck – the very recently appointed president and CEO of Hersey – said during the company’s Q2 2017 earnings conference that the company as a whole were feeling “particularly great” about their chocolate portfolio, and are fully expecting to leverage their snack business through potential acquisitions and mergers.
Over the last three years, Hershey have been very active when it comes to purchasing other brands, with Krave jerky and barkTHINS being snapped up by the heavyweight company, while they have also launched their own popcorn brand in Powell. In 2016, Hershey knocked back a takeover approach from Mondelēz.