Hershey's Buying Pirate's Booty to Double Her Healthy Snacks

Hershey's is increasing its bet on healthy foods.

The chocolate maker announced on Wednesday that it has agreed to acquire Pirate Brands, which manufactures Pirate's Booty, Smart Puffs and Original Tings, to expand its portfolio of healthier snacks.

B & G Foods will sell the following snacks for $ 420 million.

Last year, Hershey (HSY) bought Amplify Snack Brands, which manufactures SkinnyPop and Oatmega popcorn bars, for $ 1.6 billion. Pirate Brands will operate within the Amplify hub in Austin, Texas.

"We expect Pirate Brands' complete portfolio to be a perfect match for Hershey's growing Amplify business, which is geared towards consumers looking for tasty snacks without compromise," said Mary Beth. West, Hershey's growth director.

Amplify also manages BarkTHINS, the Hershey chocolate snack company, acquired in 2016.

A number of other companies have invested heavily in the health food trend to try to attract customers with alternatives to sweet or fatty snacks.

In June, Conagra (CAG) has agreed to shell out $ 10.9 billion for Pinnacle Foods, which produces among others Smart Balance and Udi's Free Gluten Foods. PepsiCo (DYNAMISM) announced last month that it is buying DIY Seltz maker SodaStream for $ 3.2 billion. Earlier this year, PepsiCo announced the acquisition of Bare Snacks, which makes baked fruit and vegetable snacks.

Others have invested earlier in healthier foods. General Mills (GIS) bought Annie's, who makes organic pasta and snacks, for $ 820 million in 2014. And Campbell Soup (CPB) acquired Bolthouse Farms, which sells smoothies, juices and carrots, in 2012.

For Campbell, the bet was a failure. In August, the company announced that it was selling Campbell Fresh, which includes Bolthouse, in order to refocus on its flagship brands such as Pepperidge Farm and Cape Cod chips.

Hershey said that Pirates snacks would help break into the category of more than $ 2.5 billion puffs. The company noted that Pirate's Booty is the fastest growing brand in the category, with growth of 8% year-on-year.

For B & G (BGS)Capitalizing on the health food trend has already paid off.

"We acquired Pirate Brands in 2013 for approximately $ 195 million," said Robert C. Cantwell, CEO of B & G, "and have more than doubled the value of the company in five years, creating exceptional value for our shareholders. "

CNNMoney (New York) First published on September 13, 2018: 12:41 ET