Hershey Acquires Joseph Schmidt Confections

Published in CSP Daily News

Completes Scharffen Berger acquisition

HERSHEY, Pa. -- The Hershey Co. has announced that its newly formed, wholly owned subsidiary, Artisan Confections Co., has acquired the assets of Joseph Schmidt Confections Inc., a premium chocolate maker.

Joseph Schmidt is known for its truffles, chocolate mosaics, specialty cookies and handcrafted chocolates presented in distinctive packaging. These products are sold in select department stores and other specialty outlets nationwide as well as in Joseph Schmidt's stores located in San Francisco and San Jose, Calif.

Hershey also [image-nocss] announced that it has completed the previously announced acquisition of premium chocolate company Scharffen Berger Chocolate Maker Inc. Scharffen Berger, based in San Francisco, is known for its high-cacao-content dark chocolate bars and baking products.

The combined purchase price for Scharffen Berger and Joseph Schmidt will be between $46.6 million and $61.1 million, with the final amount reflecting actual sales growth through 2007. Together, these companies have combined annual sales of approximately $25 million.

The Scharffen Berger and Joseph Schmidt acquisitions are great strategic opportunities for Hershey to capitalize on the high-growth, on-trend premium chocolate segment, said Richard H. Lenny, chairman, president and CEO of The Hershey Co. These companies provide two distinct platforms to broaden our presence in the $1.7 billion premium segment. Scharffen Berger is a leader in the high-cacao-content, distinctive dark chocolate arena, while Joseph Schmidt specializes in fine, handcrafted chocolate gifts. We look forward to capturing the immense growth potential of Scharffen Berger and Joseph Schmidt as we further extend Hershey's leadership position in the U.S. confectionery market.