SkinnyPop maker Amplify Snack Brands to acquire Tyrrells for around $300m

SkinnyPop maker Amplify Snack Brands has signed a definitive agreement to acquire snack food business Tyrrells for approximately $300m.

The deal has been unanimously approved by Amplify’s board of directors.

Under the terms of the deal, Tyrrells’ present owner Investcorp and members of the Tyrrells management team will receive approximately £278m in cash and roughly 2.1 million shares of Amplify’s common stock.

Tyrrells chief executive officer David Milner said: “We were lucky enough to be able to choose our long-term partner and this partnership provides a significant opportunity to accelerate sales growth for Tyrrells’ brands in the US, as well as the scope for Amplify’s brands in the international marketplace.

“Building upon the strength of each of our respective customer relationships and leveraging Tyrrells’ manufacturing capabilities, we shall be entering new territories, as well as broadening our reach in existing markets.”

Amplify Snack Brands president and chief executive officer Tom Ennis said: “Together, Amplify and Tyrrells will partner to create a truly unique international Better-For-You snack food leader that can continue to drive robust future revenue and earnings growth.

“We believe that the combination with Tyrrells will create significant long-term value for all of our stakeholders. Similar to Amplify, Tyrrells has a strong entrepreneurial spirit and successful track record of transforming categories and creating growth brands.

“We welcome David Milner and his team, and look forward to the opportunity to increase our operating scale, international reach, and product and brand diversity as we capture revenue synergies.

“We plan to capitalise on each company’s market leadership and sales forces to drive higher revenue growth than either company could independently accomplish.”

Amplify intends to close the deal by the end of the third quarter of the 2016 fiscal year.

It expects the acquisition to be accretive to both its 2017 and 2018 diluted earnings a share.

Established in 2002 and based in Herefordshire, UK, Tyrrells owns brands in Europe and several international markets.

Tyrrells reported approximately $111m in net sales for the last 12 months ended 30 June.

It is present across various snack categories and has five manufacturing facilities in the UK, Germany and Australia.