J.M. Smucker set to acquire Hostess
J.M. Smucker has signed a definitive agreement to acquire the Hostess brand of products for a total enterprise value of $5.6 billion, including $900 million of net debt.
“We are excited to announce the acquisition of Hostess Brands, which represents a compelling expansion of our family of brands and a unique opportunity to accelerate our focus on delighting consumers with convenient solutions across different meal and snacking occasions,” said Mark Smucker, chair of the board, president and chief executive officer. “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. 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. We look forward to this exciting new chapter for The J.M. Smucker.”
[Read more: Smucker’s Uncrustables launches pepperoni-packed snacks]
The acquisition includes Hostess’ sweet baked goods—Hostess Donettes, Twinkies, CupCakes, DingDongs, Zingers, CoffeeCakes, HoHos, Mini Muffins and Fruit Pies, as well as the Voortman cookie brand and several manufacturing facilities across Emporia, Kansas; Burlington, Ontario; Chicago, Illinois; Columbus, Georgia; Indianapolis, Indiana and Arkadelphia, Arkansas.
“I am extremely proud of the entire Hostess Brands team for the legacy they created in building a premier snacking company and driving industry leading returns for our investors. Today represents another exciting chapter for Hostess Brands as we combine our iconic snacking brands with The J.M. Smucker’s family of beloved brands,” said Andy Callahan, president and chief executive officer of Hostess Brands. “We believe this is the right partnership to accelerate growth and create meaningful value for consumers, customers and shareholders. Our companies share highly complementary go-to market strategies, and we are very similar in our core business principles and operations. Above all else, Hostess Brands and J.M. Smucker share a deep commitment to inspiring moments of joy and satisfaction through our products, and we look forward to continuing to do so as part of the J.M. Smucker family.”
[Read more: Hostess sweetens breakfast with Donettes, Baby Bundts]
The transaction is anticipated to close in the third quarter of the company’s current fiscal year ending April 30, 2024, and it has been unanimously approved by the boards of directors of both J.M. Smucker and Hostess.