September 12, 2023
Hostess Brands has announced it has entered into an agreement with The J.M. Smucker Co. (Smucker) to acquire all its outstanding shares in a cash and stock transaction valued at $34.25 per Hostess Brands share, representing a transaction value of approximately $5.6 billion, including the assumption of debt. Under the terms of the agreement, Hostess Brands shareholders will receive $30 in cash and 0.03002 shares of Smucker common stock (valued at $4.25 as of Sept. 8) for each share of Hostess Brands common stock. The purchase price represents a premium of approximately 54% to the closing price of $22.18 on Aug. 24, the last trading day prior to press reports of a potential transaction.
“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,” says Andy Callahan, president, chief executive officer, Hostess Brands. “Today represents another exciting chapter for our company as we combine our iconic snacking brands with the J.M. Smucker Co.’s family of beloved 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 the J.M. Smucker Co. 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 Co. family.”
“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,” says Mark Smucker, chair of the board, president, chief executive officer, J.M. Smucker. “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 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 Co.”
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