The Daily Item, Sunbury, PA

News

December 22, 2013

Hershey expands in China with acquisition

LEWISBURG — HERSHEY — The Hershey Co. is expanding its presence in China with the acquisition of a majority stake in a confectionary company there.

The U.S. candy maker announced that its subsidiary, Hershey Netherlands B.V., is acquiring an 80 percent stake in privately held Shanghai Golden Monkey Food Joint Stock Co. Ltd. for about $498 million in cash. Hershey will also assume $86 million in debt.

The deal is expected to close in the second quarter pending regulatory and Shanghai Golden Monkey shareholder approval.

Hershey is making an effort to increase its international presence to better compete against international players like Mondelez, which split from Kraft Foods last year. A big motivation for that split was a push to get snacks and candy into fast-growing overseas markets.

Hershey has increased its investment in China over the past several years. In May, the company opened a new Asia Innovation Center in Shanghai to develop new products for the area. This acquisition will help Hershey take advantage of Shanghai Golden Monkey’s existing manufacturing, brand strength and more in the region.

The Chinese company makes Golden Monkey candy, chocolates, protein-based products and snack foods. They are widely marketed across China in many cities and rural areas. It is expected to generate revenue of more than $225 million in 2013.

Janney Capital Markets analyst Jonathan Feeney said the deal will expand Hershey’s capabilities in China at a reasonable price. It also gives the company a foothold in the critical milk candy segment that it had previously lacked. He expects the acquisition will prove profitable and add to its developing market sales for years to come.

Shares of Hershey, based in Hershey, Pa., increased 50 cents to $96.30 by midday Thursday amid a modest dip in the rest of the Nasdaq index.

1
Text Only
News
  • CORBETT_TomC.jpg Corbett: VanKirk helped to save the world

    Gov. Tom Corbett today issued the following statement on the death of Northumberland County native Theodore “Dutch” VanKirk, the last surviving crew member of the Enola Gay:

    July 30, 2014 1 Photo

  • Afraid of grandson? "Now I am," Amanda Trometter says

    Erick Trometter slept with hunting and butcher knives beside his bed while living with the grandmother he allegedly attacked on the morning he was shot after allegedly pulling a knife on a city police officer.

    July 30, 2014

  • vk1.jpg Ted VanKirk: Seen from above

    The Daily Item is republishing online its spring 2012 interview with Northumberland native Ted “Dutch” VanKirk, the navigator of the Enola Gay, which dropped the first of two atomic bombs on Japan in 1945. The story appeared in Inside Pennsylvania magazine. VanKirk died Monday in Georgia at age 93.

    July 30, 2014 2 Photos

  • vankirk_ted1.jpg “The Japanese were beaten before we even dropped the bomb”

    Compared to the 58 other missions they ran together, the one they were assigned to carry out on Aug. 6, 1945 was easy.
    There would be no return fire, flying conditions were ideal, and if all went according to plan, they would be back to the base in Tinian by nightfall.

    July 30, 2014 2 Photos

  • Ritz-Craft Ritz-Craft to hire 60 for Mifflinburg plant

    MIFFLINBURG — Sixty jobs are coming to Mifflinburg as a Ritz-Craft production facility that went dark seven years ago amid the housing downturn will come back on line during the next few months, company officials announced Tuesday.

    July 29, 2014 1 Photo

  • Selinsgrove man dies when tractor flips in Chapman Township

    PORT TREVORTON — A 57-year-old Selinsgrove man died Tuesday evening when the farm tractor he was driving overturned and pinned him beneath it, according to Snyder County Coroner Bruce Hummel.

    July 29, 2014

  • VanKirk 'Real hero' of World War II dies

    ATLANTA, Ga. — Theodore “Dutch” VanKirk, the last surviving crew member of the Enola Gay, which dropped the first atomic bomb on Hiroshima, died Monday of natural causes in the retirement home where he lived in Georgia. He was 93.

    July 29, 2014 1 Photo

  • Mayor: Rental ban for drug dealers a success

    SUNBURY — A controversial landlord-tenant ordinance passed by the City Council in 2012 has become one of Sunbury’s “better success stories,” Mayor David Persing said Tuesday.

    July 29, 2014

  • Mom cited for allegedly leaving baby in car for 12 minutes

    LEWISBURG — A summary citation carrying a maximum fine of $127.50 was filed Tuesday against a Lewisburg woman accused of leaving her 10-month-old baby unattended for 12 minutes in a car in Union County on July 21.

    July 29, 2014

  • Line Mountain district, teachers $1.2M apart in contract talks

    MANDATA — Separate proposals from the Line Mountain School District and its teachers union are $1.2 million apart and not getting any closer, according to Benjamin L. Pratt, the district’s labor counsel at the CGA Law Firm.

    July 29, 2014

The Daily Marquee
Video
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.