Vending

JM Smucker to acquire Hostess Brands for $5.6B

The transaction includes the Hostess Brands sweet baked goods brands Hostess Donettes, Twinkies, CupCakes, DingDongs, Zinger, CoffeeCakes, HoHos, Mini Muffins and Fruit Pies and the Voortman cookie brand.

Image provided by J.M. Smucker Co.

September 11, 2023

The J. M. Smucker Co. has agreed to acquire Hostess Brands Inc. for $34.25 per share in a cash and stock transaction, representing a total enterprise value of approximately $5.6 billion, according to a press release.

The acquisition represents an adjusted EBITDA multiple of approximately 17.2 times based on the company's estimate of Hostess Brands full year 2023 results, and an approximate 13.2 times multiple when including anticipated run rate synergies of $100 million. It also includes approximately $900 million of net debt.

The transaction includes the Hostess Brands sweet baked goods brands Hostess Donettes, Twinkies, CupCakes, DingDongs, Zinger, CoffeeCakes, HoHos, Mini Muffins and Fruit Pies and the Voortman cookie brand, along with manufacturing facilities in Emporia, Kansas; Burlington, Ontario; Chicago, Illinois; Columbus, Georgia; Indianapolis, Indiana and Arkadelphia, Arkansas and a distribution facility in Edgerton, Kansas.

Approximately 3,000 employees will join the company in conjunction with the transaction.