Hershey boosts better-for-you candy portfolio with Lily’s acquisition

BOULDER — Lily’s Sweets LLC, a Boulder maker of low-sugar confections, has entered into an agreement to be acquired by The Hershey Co. (NYSE: HSY).

“Hershey is focused on developing a [better-for-you or BFY] confection portfolio that offers a variety of choices to meet the evolving needs of our consumers,” Hershey’s United States president Chuck Raup said in a prepared statement. “Lily’s is a great strategic complement to our existing offerings in this growing segment of the confection category.”

Lily’s makes Stevia-sweetened chocolate bars, peanut butter cups, baking chips and chocolate covered nuts. 

The deal, which will be financed with cash and short-term borrowing, is expected to close in the next few months. Financial terms were not disclosed, but Hershey did say in a U.S. Securities and Exchange Commission disclosure that the addition of Lily’s is expected to be slightly accretive to earnings after the first post-acquisition year. 

“By joining the Hershey’s family of brands, Lily’s will become a platform confection brand making BFY options easily accessible to all consumers,” Lily’s CEO Jane Miller said in a prepared statement.

Hershey has a history with Boulder-born snack companies, gobbling up One Brands LLC in 2019 for $397 million. 

The acquisition of One Brands, which makes One Bars, bolstered the Pennsylvania candy giant’s nutritional bars portfolio.

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