US-based snacks manufacturer Hershey has signed a definitive agreement to acquire nutrition bars maker ONE Brands for $397m to further strengthen its position in the snacking segment.

ONE Brands will complement Hershey’s Oatmega business, which is part of the Amplify Snack Brands acquired last year.

Hershey further plans to leverage its core capabilities in sales and distribution, category management and digital commerce in a bid to expand the existing offerings of ONE Brands.

Hershey chief growth officer Mary Beth West said: “ONE’s portfolio of great-tasting nutrition bars, with indulgent flavours such as Birthday Cake, Maple Glazed Doughnut and Peanut Butter Pie, will be a strong strategic fit within our overall innovative snacking powerhouse vision.

“Our beloved confection brands will continue to be the engine that drives our business while we broaden our better-for-you portfolio, offering more snacking choices for more consumers.”

To fund the acquisition, Hershey intends to use available cash on hand and short-term borrowings.

Completion of the deal is subject to customary regulatory approvals, as well as other closing conditions, and is expected to take place in the fourth quarter of this year.

ONE Brands founder Ron McAfee said: “We’re proud of the brand we built and look forward to continuing to build on our momentum with the strength and capabilities that Hershey can provide.”

The latest acquisition comes after Hershey invested in Fulfil Holdings and Blue Stripes through its venture model C7 Ventures this month.

Fulfil produces nutrition bars in the UK and Ireland.

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