Smuckers to purchase Hostess Brands, owner of Twinkies, for over $5 billion

September 11, 2023 12:17 PM

Smuckers announced a major acquisition on Monday, purchasing Hostess, the maker of Twinkies, for roughly $5.6 billion.

The acquisition of Hostess Brands will give the J.M. Smucker Company ownership over multiple products, including Donettes, Zingers, and Mini Muffins, and will also give the company ownership to multiple Hostess Brands manufacturing locations. Three thousand employees will also join the company through this transaction.

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“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,” Mark Smucker, the president of the J. M. Smucker Company, said.

Hostess-Smucker — A Hostess sign is shown on a closed retail outlet store in Garland, Texas, Jan. 11, 2012. Hostess, the maker of snack classics like Twinkies and HoHos, is being sold to J.M. Smucker in a cash-and-stock deal worth about $5.6 billion. Smucker, which makes everything from coffee to peanut butter and jelly, will pay $34.25 per share in cash and stock, and it will also pick up approximately $900 million in net debt.

This deal is expected to close in the third quarter of Smucker’s current fiscal year, which will be toward the end of January 2024, and the boards of directors of both firms unanimously accepted the agreement.

Smuckers is also acquiring the roughly $900 million of net debt from Hostess Brands through this transaction.

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The acquisition of Hostess Brands comes in the wake of other major acquisitions in the food and grocery industry. Last month, it was announced the Subway restaurant chain was being purchased by the equity firm Roark Capital Partners for $10 billion.

Similarly, Aldi announced in August that it was purchasing Winn-Dixie and Harveys Supermarket, two Southeastern grocery store chains. The purchase gives Aldi almost 400 new stores across multiple states in the Southeast under its ownership.