Amplify Snack Brands Inc (NYSE: BETR) is having an overwhelmingly strong day in the market today, and for good reason. The company announced that it would soon be acquired. Of course, this led to excitement among investors, causing gains in the stock. Today, we’ll talk about the acquisition, what we’re seeing from BETR as a result, and what we’ll be watching for ahead.
BETR Will Be Acquired
As mentioned above, Amplify Snack Brands is having an overwhelmingly strong start to the trading session this morning after announcing acquisition news. According to a press release that was offered early this morning, The Hershey Company (HSY) has entered into an agreement to buy the company. Under the terms of the agreement, HSY will be acquiring BETR in an all cash deal valued at $12 per share. In a statement, Michele Buck, President and CEO at HSY, had the following to offer:
“The acquisition of Amplify and its product portfolio is an important step in our journey to becoming an innovative snacking powerhouse as together it will enable us to bring scale and category management capabilities to a key sub-segment of the warehouse snack aisle… Hershey’s snack mix and meat snacks products, combined with Amplify’s Skinny Pop, Tyrells, Oatmega, Paqui and other international brands, will allow us to capture more consumer snacking occasions by creating a broader portfolio of brands.”
The above statement was followed up by Tom Ennis, President and CEO at BETR. Here’s what he had to offer:
“Since Amplify’s inception in 2014, our company’s goal has been to bring transparency to our products, and clean ingredients and great tasting snacks to consumers… The transaction is a continuation of our mission as Hershey also believes in bringing to consumers great-tasting snacks made with the best ingredients possible. Hershey is a great cultural partner for Amplify and I’m excited for our team who will have access to Hershey’s marketing and go-to-market resources to take our brands to the next level.”
What We’re Seeing From The Stock
One of the first things that we learn when we get into the market is that the news causes movement, and there are few bits of news that can lead to the type of movement that acquisition news will. Of course, with the strong acquisition news, we’re seeing strong gains in the value of the Amplify Snack Brands as a result. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (10:32), BETR is trading at $11.94 per share after a gain of $4.94 per share or 70.50%.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will keep our eyes on the deal between BETR and HSY. While the boards of both company’s have unanimously approved the transaction, it is still subject to customary closing conditions. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!