ORRVILLE, Ohio (WKBN) – The J.M. Smucker Company (Smucker’s) announced the signing of an agreement Monday to acquire Hostess Brands, Inc., the creator of Twinkies, HoHos and other packaged treats.
The deal is 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, according to a news release from J.M Smucker Co. It also includes Hostess’s manufacturing facilities Emporia, Kansas; Burlington, Ontario; Chicago, Illinois; Columbus, Georgia; Indianapolis, Indiana and Arkadelphia, Arkansas (which is currently under construction) and a distribution facility in Edgerton, Kansas.
According to the company, about 3,000 employees will join the company in conjunction with the transaction.
Smucker’s is headquartered in Orrville, Ohio, and the company produces peanut butter, fruit spreads, dog and cat food products and other items.
Mark Smucker, chair of the board, president and chief executive officer, said the deal allows the company to expand its product offerings.
“We are excited to announce the acquisition of Hostess Brands, which represents a compelling expansion of our family of brands and a unique opportunity to accelerate our focus on delighting consumers with convenient solutions across different meal and snacking occasions,” Smucker said.
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 Co. and Hostess Brands, Inc.