- Amplify Snack Brands, Inc., a fast-growing better-for-you foods brand and maker of SkinnyPop ready-to-eat popcorn, may be a promising acquisition target for larger companies looking for synergies in their snacks business.
- The company filed for an initial public offering in July, valued at up to about $276 million, with the intent of selling a minimum of 15 million shares.
- According to its IPO filing, Amplify doubled its sales in 2014, though net income fell during that time.
Credit Suisse believes that Amplify's flagship brand SkinnyPop will grow by about 20% per year through 2018, "driven by double-digit category growth, incremental distribution, and share gains," Food Business News reported. SkinnyPop currently is the No. 2 ready-to-eat popcorn brand with 16% market share, an increase from 12% last year, per Nielsen data. But in terms of customer loyalty and frequency of purchases, SkinnyPop is the category leader.
This sustained growth, as well as the possible success of Amplify's acquisition of the Paqui tortilla chip brand earlier this year, could make Amplify a very attractive brand for food companies and their snack divisions.
Robert Moskow, an analyst with Credit Suisse, suggested that Campbell Soup Co. could be one potential buyer, as it has been branching out to acquire more better-for-you foods companies, such as Bolthouse Farms and Plum Organics, and has a snacking business, reports Food Business News.
Another could be Kellogg, which has a snacking sector with Pringles, Moskow said.