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Lily's makes low-sugar products include dark and milk chocolate bars, baking chips, peanut butter cups and other confection products that align with Hershey's multi-pronged better-for-you snacking strategy.
"Hershey is focused on developing a better-for-you confection portfolio that offers a variety of choices to meet the evolving needs of our consumers," said Chuck Raup, the leader of Hershey's flagship U.S. business. "Lily's is a great strategic complement to our existing offerings in this growing segment of the confection category."
Better-for-you offerings at Hershey's are still under-developed and the Lily's acquisition would enable Hershey to accelerate this growth and reimagine the future of the candy aisle in partnership with retailers, says Raup.
Lily's is based in Boulder, Colorado, but the founder has Pennsylvania ties. Founder, Cynthia Tice's opened Center Foods, a natural foods store, in Philadelphia in 1978. Cynthia launched four Lily's chocolate style bars nationally in Whole Foods Market in 2012.
The company now makes an expanded line of bars, baking chips and other confections can be found across the country at key retailers.
The brand's mission is to offer consumers a range of great tasting, low sugar treats.
"Cynthia had the vision that consumers wanted a better-for-you option in confections and today 80% of adults want to cut back on their sugar intake," said Jane Miller, CEO of Lily's. "By joining the Hershey's family of brands, Lily's will become a platform confection brand making better-for-you options easily accessible to all consumers."
The acquisition will be financed with cash on hand as well as short-term borrowings.
The purchase of Lily's is expected to yield earnings in the first full year post closing.
The acquisition is subject to customary regulatory approvals and is expected to close in the next few months.
There is no word if production or personnel will move to Pennsylvania.
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