Lolli & Pops Acquires Hammond’s Candies
TerraMar Capital-backed Lolli & Pops announced today it has acquired fellow Denver, Colo.-based candy producer Hammond’s Candies for an undisclosed sum. According to the announcement, the transaction marks a significant milestone in Lolli & Pops’ growth strategy that has been underway since it was purchased by TerraMar in 2020.
Founded in 1920, Hammond’s Candies is known for its handcrafted candy canes, lollipops, and other nostalgic sweets. By combining the strengths of both companies, Lolli & Pops seeks to “leverage the artisanal craftsmanship” of Hammond’s while introducing new products to a broader audience.
Andrew Schuman will remain president and CEO of Hammond’s as part of the deal.
“Hammond’s dedication to creating high-quality, handmade confections aligns perfectly with our vision of providing our customers with the finest and most delightful treats,” said Keri Morris, CEO of Lolli & Pops, in a press release. “This acquisition represents a union of two companies that share a passion for sweetness and a commitment to excellence.”
Schuman added, “Hammond’s has had the fortune of developing a world-class portfolio of timeless and innovative snacking and confections products that has resulted in shared traditions passed down through generations. I’m excited about partnering with Lolli & Pops and playing a meaningful role in the continued growth of both companies going forward.”
The deal was funded by a new revolving credit facility provided by PNC Bank, a term loan from Advantage Capital Management LLC, and additional investment from TerraMar. Lolli & Pops believes the combined enterprise is well positioned for continued growth both organically and through acquisitions, per today’s announcement.
Lolli & Pops was founded in 2011 as a mall-based upscale candy chain. The company hit bankruptcy in 2020, claiming a decline in traditional retail sales left it without cash to pay its suppliers and landlords; Lolli & Pops was allegedly locked out of eight stores prior to its bankruptcy filing because of unpaid rent, reported Law360.
In 2020, a Delaware judge gave his stamp of approval for the bankrupt owner of Lolli & Pop’s – Mishti Holdings LLC – to sell its 69 stores for approximately $2.8 million, a lower price than the company had initially sought. According to its website, Lolli & Pops currently operates 59 stores across the U.S. and has also diversified its business to include ecommerce and wholesale.
The transaction between Lolli & Pops and Hammond’s Candies comes just one week after confectionery and snacking giant The Hershey Company announced its acquisition of sour candy brand Sour Strips to expand its non-chocolate sweets portfolio amid heightened cocoa prices.
