Strategic move aims to accelerate focus on convenient consumer occasions
The J. M. Smucker Co. announced the signing of a definitive agreement 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, which includes approximately $900 million of net debt. This represents an adjusted EBITDA multiple of approximately 17.2x based on the company's estimate of Hostess Brands full year 2023 results, and an approximate 13.2x multiple when including anticipated run rate synergies of $100 million. The acquisition expands the company's offering of beloved brands in growing categories and accelerates its focus on convenient consumer occasions.
The transaction includes the Hostess Brands sweet baked goods brands (Hostess® Donettes®, Twinkies®, CupCakes, DingDongs®, Zingers®, CoffeeCakes, HoHos®, Mini Muffins and Fruit Pies) and the Voortman® cookie brand, along with manufacturing facilities in Emporia, Kan.; Burlington, Ontario; Chicago; Columbus, Ga.; Indianapolis and Arkadelphia, Ark. (which is currently under construction) and a distribution facility in Edgerton, Kan. Additionally, approximately 3,000 employees will join the company in conjunction with the transaction.