The J. M. Smucker Co. has agreed to acquire Hostess Brands Inc. for approximately $5.6 billion, according to a release from Smucker published today. The company will pay $34.25 per share in a cash and stock transaction, and the deal includes approximately $900 million of net debt.
Under the terms of the agreement, Hostess shareholders will receive $30 in cash and 0.03002 shares of The J.M. Smucker Co. common stock (valued at $4.25 as of September 8, 2023) for each share of Hostess Brands common stock.
Smucker believes the acquisition helps build out its portfolio of beloved brands in growing categories and accelerates its focus on convenient consumer occasions, the release said. Included in the deal are Hostess’ sweet baked goods brands Hostess Donettes, Twinkies, CupCakes, DingDongs, Zingers, CoffeeCakes, HoHos, Mini Muffins and Fruit Pies, and the Voortman cookie brand. Manufacturing facilities in Emporia, Kan., Burlington, Ont., Columbus, Ga., Chicago and Indianapolis — as well as a processing facility under construction in Arkadelphia, Ark., and a distribution facility in Edgerton, Kan. — also will change hands in the deal.
The transaction is anticipated to close in the third quarter of Smucker’s current fiscal year ending April 30, 2024.
Hostess Brands had been rumored to be on the sales block for the past few weeks, according to several news reports.
