Hershey Sells Pasta Unit to New World

Hershey Foods Corp. said it sold its dry pasta business to closely held New World Pasta for $450 million in cash, enabling it to concentrate on its candy operations. The Hershey, Pa.-based company, maker of Hershey’s Kisses and chocolate bars and Reese’s Peanut Butter Cups, will retain a stake of less than 10% in the unit that makes such pasta brands as Ronzoni and San Giorgio. The sale, expected to close at the end of January, ends Hershey’s 32-year presence in the U.S. branded dry pasta market, which it dominated. The unit contributed $400 million to Hershey’s total sales of $4.32 billion last year. New World said it would locate the division’s headquarters in central Pennsylvania and offer jobs to the unit’s estimated 900 employees at its six manufacturing plants around the country, including one in Fresno. Hershey announced the deal after the close of trading. Its shares fell 6 cents to close at $63.06 on the New York Stock Exchange.