The J.M. Smucker Co., known for its popular brands like Jif peanut butter and Uncrustables, has announced its plans to acquire Hostess Brands, the maker of beloved snacks like Twinkies and HoHos. The deal, valued at approximately $5.6 billion, will be a cash and stock transaction, including the assumption of debt.
Hostess Brands, in a press release, expressed their excitement about the acquisition and emphasized how it will lead to accelerated growth and create value for consumers, customers, and shareholders. Both companies share similar go-to-market strategies and a commitment to delivering joy and satisfaction through their products.
For The J.M. Smucker Co., this acquisition represents an opportunity to expand its brand portfolio and offer consumers convenient solutions for various meal and snacking occasions. The addition of Hostess Cakes’ iconic sweet snacking platform will allow The J.M. Smucker Co. to leverage the brand’s strong distribution presence in convenience stores, as well as its innovation pipeline.
The J.M. Smucker Co. is no stranger to the food industry, as it is the parent company of popular brands like Santa Cruz Organic, Knott’s Berry Farm, Dickinson’s, and Carnation. With the addition of Hostess Brands, they aim to further delight consumers with their range of products.
Under the terms of the agreement, Hostess shareholders will receive $30.00 in cash and 0.03002 shares of The J.M. Smucker Co. common stock for each share of Hostess Brands common stock. However, the completion of the transaction is subject to the tender of a majority of the outstanding shares of Hostess common stock and other customary closing conditions, including regulatory approvals.
Despite these conditions, the boards of directors of both companies have unanimously approved the transaction. If all goes according to plan, the acquisition is expected to close in the third quarter of The J.M. Smucker Co.’s current fiscal year.
This deal highlights the ongoing consolidation within the food industry as companies seek to expand their portfolios and reach. The J.M. Smucker Co.’s acquisition of Hostess Brands brings together two well-known names in the snack industry and is expected to pave the way for even greater success and innovation in the future.
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