Food & Beverage

Hershey submits $1B bid for Russell Stover: WSJ

Source: Russell Stover

Hershey is one of several companies battling to purchase boxed chocolate-maker Russell Stover, in a move that could become its biggest acquisition to date, The Wall Street Journal reported Friday.

Hershey, which is known for its iconic chocolate bars, has submitted a $1 billion offer for the family-owned company, WSJ said citing sources familiar with the matter.

Last year, the Pennsylvania-based Kit-Kat-maker acquired a Chinese chocolate company for $584 million, according the report.

Read More Chocolate price hikes could make it 'like Champagne'

Godiva owner, Yildiz Holding, and a host of private equity firms have also submitted bids for the company.

Russell Stover, the third-largest chocolate producer based on U.S. sales, has hired Goldman Sachs to help it in its quest for a buyer, the report said.

The firm is based in Kansas City, Missouri, and has about 4,500 employees.

Hershey shares dropped about 1 percent in after-hours trading following the announcement. (Click where to see what the stock is doing now.)

Click here to read the full report from WSJ.