Hershey recently bought out China’s candy maker Shangai Golden Monkey Food Co., in what might be the tastiest purchase in modern history for sugar lovers across the globe. It’s said that Hershey is interested in expanding its financial reach in China, where over 200 varieties of candy are made for its people. The Hershey-based maker, perhaps best known for their popular Reese’s candies and delicious chocolate kisses, settled the official deal this week, agreeing to pay $498 million to take control of the massive company. USA Today provides details on the dessert-like deal this Thursday, Dec. 19, 2013, adding that in addition to ownership of Wedding Day treats, Hershey is also taking on a giant $86 million in debt.
The Hersey China candy maker combination has two of these sugar giants coming together, with Hershey’s subsidiary assuming control of over 80% of Shanghai Golden Monkey’s monetary stock this 2014, and the final 20% before the end of 2015. As of this month, Shanghai Golden Monkey Food has a lot to offer to Hershey. It has five major production sites, and it is believed that its steadily rising revenue will hit a grand total of $225 million before the New Year arrives. Over 200 varieties of tasty snacks and candy are made and marketed throughout China, as well as being sold to other countries around the world. It’s no surprise, then, why Hershey was interested in getting their finger-licking-good hands on this particular Golden Monkey.
According to the official press release on the candy maker’s aspirations:
“The acquisition is part of Hershey's new move to expand its operations in China. In May 2013, Hershey opened an Asia Innovation Center in Shanghai.”
"Shanghai Golden Monkey is the type of business we've been focused on for potential M&A," said Hershey International president Humberto P. Alfonso in a statement accompanying the acquisition. "It fits Hershey's acquisition criteria: it is located in our primary international market, China; it is a pure play confectionery and snacks company; and it has distribution into channels where Hershey products have yet to penetrate. Additionally, the company has a strong history of innovation and product quality as evidenced by the outstanding reputation of its core brand, Golden Monkey, which has been nationally recognized as one of China's most iconic brands."