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J.M. Smucker To Acquired Hostess Brands For $5.6B

Pile of boxes of Twinkies brand cakes for sale at a supermarket aisle. Photo Credit: Shutterstock

Posted September 11, 2023

J.M. Smucker Co. will acquire the baked goods distributor Hostess Brands Inc. in a deal worth approximately $5.6 billion the company said Monday.

The $5.6 billion transaction roughly translates to $34.25 per share in cash and stock.

The deal involving Lenexa-based Hostess Brands, makers of Twinkies, CupCakes, DingDongs, Zingers and HoHos is expected to close in the third quarter of J.M. Smucker’s fiscal year.

In addition to the acquisition, J.M. Smucker will also take on approximately $900 million of Hostess Brands’ debt, according to the company.

“We believe this is the right partnership to accelerate growth and create meaningful value for consumers, customers and shareholders,” Hostess Brands CEO Andy Callahan said. “Our companies share highly complementary go-to market strategies, and we are very similar in our core business principles and operations.”

As part of the conjunction, 3,000 Hostess employees will join J.M. Smuckers following the transaction.

Hostess Brands has manufacturing facilities in Emporia, Kansas; Burlington, Ontario; Chicago, Illinois; Columbus, Georgia; Indianapolis, Indiana and Arkadelphia, Arkansas—currently under construction—and a distribution facility in Edgerton, Kansas.

View the full news release, here.