J M SMUCKER Co acquires Hostess Brands, Inc.

J M SMUCKER Co acquired Hostess Brands, Inc. for approximately $5.6 billion enterprise value ($34.25 per share, including ~$900 million of net debt), a transaction completed in November 2023, structured as combination (cash and stock).

Hostess Brands, Inc. operates in Sweet baked snacks / convenient snacking, is based in Lenexa, Kansas, USA; manufacturing in Emporia KS, Burlington ON, Chicago IL, Columbus GA, Indianapolis IN and Arkadelphia AR, had revenue of about Adjusted EBITDA multiple of ~17.2x based on estimated full-year 2023 results (~13.2x including run-rate synergies). Hostess Brands is a leading sweet baked snacks company whose iconic brands include Hostess Donettes, Twinkies, CupCakes, DingDongs, Zingers, CoffeeCakes, HoHos, Mini Muffins and Fruit Pies, along with the Voortman cookie brand.

Expands the Company's family of beloved brands in attractive categories with iconic snacking brands and accelerates its focus on convenient consumer occasions; expected to be accretive to adjusted earnings per share in the first fiscal year, with anticipated run-rate synergies of $100 million.

Iconic, market-leading sweet baked goods portfolio in one of the largest and fastest-growing snacking categories, with strong convenience-store distribution. Anticipated run-rate cost synergies of approximately $100 million Operated within Smucker's Sweet Baked Snacks segment