Hershey nears $1.6bn deal to buy Amplify Snacks

Hershey Co (HSY.N), the maker of Reese's Peanut Butter Cups and Hershey's Kisses, is nearing a deal to buy SkinnyPop parent Amplify Snack Brands (BETR.N) for $1.6 billion, CNBC reported on Monday. The prospective takeover values Amplify at £8.98 a share, a 71% premium to Friday's closing price. "Hershey's snack mix and meat snacks products, combined with Amplify's Skinny Pop, Tyrrells, Oatmega, Paqui and other worldwide brands, will allow us to capture more consumer snacking occasions by creating a broader portfolio of brands".

The Austin-based company, formed in 2014, accomplishes this "with a focus on better-for-you products that deliver clean, simple and transparent ingredients as well as unique flavors and forms", said Hershey.

But the acquisition of Amplify will mark a bigger bet on the snacking space, as well as one of the first big moves by new chief executive Michele Buck.

It was sold to Amplify when revenues stood at £84m as global sales of the crisps were on the up.

Amplify is known in the United States for making SkinnyPop popcorn, which recently became embroiled in a lawsuit with the popcorn invented by Pret a Manger founder Jeremy Metcalfe over use of the word "skinny".

The Tyrrells stable of products include potato, vegetable and crinkle cut crisps and premium popcorn.