Hershey to buy Dot's Pretzels and Pretzels Inc for $1.2bn

US chocolate maker Hershey has agreed to buy Dot’s Pretzels - the owner of Dot’s Homestyle Pretzels - and Pretzels Inc, for around $1.2bn deal.

Hershey said Dot's Pretzels is "a perfect complement" to its growing salty snacking portfolio and would create an opportunity to reach new consumers in new occasions, advancing the company’s "snacking powerhouse vision".

President and chief executive Michele Buck said: "As the fastest growing US pretzel brand, Dot's Pretzels would further accelerate our success in the permissible salty snack category, along with our successful SkinnyPop and Pirate's Booty brands.

"With a unique range of bold, distinctive seasonings and a flavourful crunch that creates a premium pretzel experience for consumers, Dot's Pretzels stand apart from all other products in the pretzel category and represents 55 percent of the pretzel category's growth during the past year."

Hershey will buy Pretzels Inc., a co-manufacturer of pretzels for Dot’s Pretzels and several other brands, from an affiliate of private investment firm Peak Rock Capital.

Buck said: "Pretzels Inc. will help us expand Hershey's snacking and production capabilities while keeping the special connection to Dot's. It will be important as we continue to grow this already fast-growing brand and create new products in the broader pretzel category."