Hostess Brands To Acquire Wafer And Cookie Giant Voortman

Posted On: 12/3/2019

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KANSAS CITY, MO -- Hostess Brands Inc. will acquire Voortman, a leading and rapidly growing manufacturer of premium, branded wafers as well as sugar-free and specialty cookies, from Swander Pace Capital for approximately $320 million in cash. Hostess expects to close the transaction in early January.

Voortman is the No. 1 player in crème wafers and sugar free cookies, as reported by Nielsen for the 52-week period ended Nov. 2, 2019 and has achieved compound annual point of sale growth over the past three years of approximately 5%. Voortman will become a wholly owned subsidiary of Hostess.

Founded in 1951 by brothers William and Harry Voortman and headquartered in Burlington, ON, Canada, Voortman has distribution mainly in the United States and Canada.

Hostess said the transaction will create a larger and more diversified sweet snacking company with numerous strategic and financial benefits. Hostess' existing portfolio of iconic snack cakes includes Hostess Cupcakes, Twinkies, Donettes, Ding Dongs, Zingers, Danishes, Honey Buns and Coffee Cakes.

"Voortman is a leading brand with a well-defined consumer position that complements and extends the growing Hostess portfolio into the growing cookie and better-for-you sweet snacking categories with meaningful runway for future growth," commented Hostess president and chief executive Andy Callahan.

The combined company expects to realize additional benefits of scale by sharing established, efficient infrastructure and strengthening of collaborative retail partnerships in the United States and Canada.

Hostess expects the transaction to provide approximately $20 million of incremental adjusted EBITDA in 2020, growing to $40 to $50 million by 2022.