Global confectioners The Hershey Company has acquired North America-based The Allan Candy Company for an undisclosed amount.
Allan Candy's product portfolio includes confectionery brands such as Allan, Big Foot, Hot Lips and Laces. It is also a leader in the Canadian Easter novelty chocolate segment and the Canadian Candy Cane market.
Currently, more than half of Allan Candy's manufacturing capacity is used to make Hershey Sweets and Refreshment products such as Jolly Rancher hard candy and Lancaster caramels for North America.
Global Sweets and Refreshment senior vice-president Steven Schiller said: "The addition of Allan Candy's high-quality manufacturing capabilities and confectionery portfolio greatly enhances our North American business. Allan has been a long-standing sweets manufacturing partner that will strengthen our sales and profit performance."
Hershey will operate three confectionery manufacturing facilities in Canada with the acquisition of Allan. The purchase would also include Allan Candy's 170,000ft² facility located in Granby, Canada.
Hershey Canada vice-president Rohit Grover said: "The acquisition of Allan Candy extends Hershey's ability to serve consumers across Canada by adding a number of iconic Canadian confectionery brands to our portfolio. We are delighted to welcome Allan Candy to Hershey and continue working with them to make great-tasting, high-quality products for The Hershey Company as well as their popular branded products."
Currently, Hershey's Canada operations employ a total of 900 people across the country.
The company announced its plans for acquiring Allan on 28 September 2014 and also said that the purchase would not affect Hershey's previously announced adjusted earnings per share-diluted outlook for this year provided on 29 October.
