Shares of Amplify Snack Brands Soar 70% on Hershey Acquisition Agreement

Shares of Amplify Snack Brands Soar 70% on Hershey Acquisition Agreement

Shares of Amplify Snack Brands (NYSE: BETR), a food company focused on developing and marketing "Better-For-You" snacks, are soaring 70% higher Monday morning after The Hershey Company (NYSE: HSY) entered into an agreement to acquire Amplify.

The deal is valued at $1.6 billion on an enterprise basis, and will bring Skinny Pop -- the second-largest ready-to-eat popcorn brand -- under the Hershey umbrella of brands. The move helps Hershey strengthen its snack aisle presence and it offers investors upside as synergies and cost savings play out. In fact, annual run-rate synergies of roughly $20 million are expected to be generated over the next two years and management believes the acquisition will be accretive to adjusted earnings-per-share in the first year, post closing.

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Source: Fool.com