Lilys produces dark and milk chocolate products. Credit: Jessica Loaiza on Unsplash.

Sign up here for GlobalDatas free bi-weekly Covid-19 report on the latest information your industry needs to know.

The Hershey Company has concluded the acquisition of confectionery brand Lily’s in a $425m deal.

Last month, Hershey entered a definitive agreement to acquire Lily’s to expand its better-for-you (BFY) confectionery portfolio.

Hershey Company US president Chuck Raup said: “Lily’s is a great addition to Hershey’s growing portfolio of better-for-you snacking brands, and we are excited to add this high-growth, leading BFY brand and to get to work with its talented and innovative team.

“Lily’s popular low-sugar products are a great strategic fit with our multi-pronged better-for-you snacking strategy and will perfectly complement our existing iconic Hershey’s BFY offerings.”

Lily’s produces low-sugar products, including dark and milk chocolate style bars, baking chips, peanut butter cups, and other confectionery products.

Lily’s initially launched four chocolate-style bars nationally in Whole Foods Market, and currently offers a wide range of confections that can be found across the country.

The acquisition complements Hershey’s multi-pronged BFY snacking strategy and enhances its portfolio of chocolate and candy products.

At the time of signing the agreement, Raup said that the company is focused on developing a BFY confection portfolio that offers different choices to meet the evolving needs of its consumers.

Furthermore, Lily’s is a strategic complement to Hershey’s existing offerings in the growing confection category segment. In October 2020, Hershey acquired a minority stake in natural snack company Quinn by making an undisclosed investment.

Founded in 2010, Quinn offers microwave popcorn, pretzels, and pretzel chips. The company has distribution in more than 7,500 stores across the US.