According to CNBC, Amplify Snack Brands are on the brink of being acquired by confectionery giants Hershey’s in a $1.6bn (£1.1bn) deal.
The deal in question values Amplify – who own popular crisp brand Tyrrells – at $12 a share according to CNBC, which in turn represents a 71% premium to the closing price of $7 a share on the 15th December.
Amplify are based in Austin, Texas, and currently have a market cap of $537m. Some of their market brands include SkinnyPop popcorn.
However, according data that was compiled by Bloomberg, the company’s total debt as of the 30th September was $590.5m, and it’s thought the deal could potentially be wrapped up very quickly.
The move from Hershey’s is a statement of intent from the new chief executive Michele Buck, who’s been tasked with leading consolidation in the confectionery industry in the aftermath of Hershey rejecting a takeover bid from fellow confectionery giants Mondelez.
Back in march at an investor meeting, the management at Hershey’s outlined that they’re very interested in companies who have managed to achieve accelerated growth in the UK confectionery industry. The company is now worth $24bn, with Hershey shares gaining a whopping 10% in 2017.
