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J.M. Smucker Acquiring Hostess Brands for $5.6B
The J.M. Smucker Company has agreed to buy Hostess Brands for $5.6 billion, including $900 million in new debt, in a deal that will bring together two of the country’s largest snack manufacturers. Smucker said the deal represents adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of about 17.2 times based on its estimate of Hostess Brands’ 2023 results.
The deal was worth about $4.6 billion, excluding debt, with Jif peanut butter maker Smucker paying Hostess shareholders $34.25 per share. The move marks a significant turnaround for Hostess, famed for its iconic Twinkies, which has filed for bankruptcy twice, in 2004 and 2012. Approximately 3,000 employees will join The J.M. Smucker company in conjunction with the transaction.
The transaction is anticipated to close in the third quarter of the company’s current fiscal year ending April 30, 2024. The transaction has been unanimously approved by the boards of directors of both The J.M. Smucker Company and Hostess Brands, Inc.
