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News > Deals
Hershey gets Nabsico units
November 6, 2000: 2:43 p.m. ET

Leading chocolate maker buying gum, mint business for $135M cash
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NEW YORK (CNNfn) - Leading chocolate producer Hershey Foods Corp. agreed Monday to acquire the breath freshener mints and gum businesses of Nabisco Inc., a unit of Nabisco Holdings, for about $135 million cash.

The products being acquired include Ice Breakers, Breath Savers Cool Blasts intense mints, Breath Savers mints, Bubble Yum and Carefree gums, and had sales of about $270 million in 1999.

New York-based Phillip Morris Cos. Inc. (MO: Research, Estimates) must complete its $14.9 billion purchase of Nabisco Holdings before Hershey can buy the Nabisco businesses, Hershey said. The Federal Trade Commission must also approve the Hershey purchase.

graphicHershey's purchase of the Nabisco units is expected to close by the end of the year and is anticipated to add to Hershey's earnings per share.

In June, tobacco producer Philip Morris agreed to purchase Nabisco Holdings Corp. (NA: Research, Estimates), the maker of Oreo cookies and Ritz crackers, for $14.9 billion, while R.J. Reynolds Tobacco Holdings (RJR: Research, Estimates) struck a deal to buy Nabisco parent Nabisco Group Holdings for $9.8 billion.

Once Philip Morris completes the purchase of Nabisco Holdings Corp., R.J. Reynolds will buy Parsippany, N.J.-based Nabisco Group Holdings (NGH: Research, Estimates. The sole asset of Nabisco Group Holdings after it sells Nabisco foods will be about $11.8 billion in cash from the deal.

Philip Morris expects the deal for Nabisco Holdings, which still is under FTC review, to close by the end of the year, a spokesman said. Philip Morris declined to comment on which units it must divest to consummate the purchase.

Philip Morris gained 62 cents to $35.62, Nabisco Group Holding rose 19 cents to $29.12, Nabisco Holdings climbed by 6 cents to $54.25 in Monday afternoon trading. graphic

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.