The J. M. Smucker Co. revealed today the signing of a definitive agreement to acquire Hostess Brands, Inc. for $34.25 per share in a cash and stock transaction, representing a total enterprise value of approximately $5.6 billion, including roughly $900 million of net debt.
The acquisition expands the company’s offerings in growing categories and highlights its focus on convenient consumer occasions, according to J.M. Smucker Co.
The transaction includes Voortman cookie brands, various global manufacturing facilities, a distribution center in Kansas, and the Hostess Brands sweet baked goods brands: Hostess Donettes, Twinkies, CupCakes, DingDongs, Zingers, CoffeeCakes, HoHos, Mini Muffins, and Fruit Pies. Approximately 3,000 employees will join J.M. Smucker Co. in relation to the transaction.
"With this acquisition, we are adding an iconic sweet snacking platform; enhancing our ability to deliver brands consumers love and convenient solutions they desire; and leveraging the attributes Hostess Brands offers, including its strong convenience store distribution and leading innovation pipeline, combined with our strong commercial organization and consistent retail execution across channels to drive continued growth,” said Mark Smucker, chair of the board, president and CEO, in a statement. “Our organization is well positioned to deliver on the great potential our expanded family of brands offers, as has been reflected by our history of growth through acquisition and the successful integration of new categories to our business."
The company shared the following transaction details:
• The acquisition adds Hostess Brands snacks and innovation in the sweet baked goods category to J.M. Smucker Co.’s current coffee, peanut butter, frozen handheld, fruit spreads, dog snacks, and cat food category offerings,
• It positions J.M. Smucker Co. to deliver on consumer needs across occasions with greater convenience and selection while driving innovation,
• Hostess Brands offers a strong financial profile with a combination of scale and profitability.
"We believe this is the right partnership to accelerate growth and create meaningful value for consumers, customers and shareholders,” Andy Callahan, president and CEO of Hostess Brands, in a statement. “Our companies share highly complementary go-to-market strategies, and we are very similar in our core business principles and operations."
The transaction is anticipated to close by April 30, 2024. It has been unanimously approved by the boards of both companies.
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