JM Smucker, a US-based food and beverage company has announced the acquisition of Hostess Brands, a long-established US bakery firm, “to accelerate focus on convenient consumer occasions”.
Hostess Brands is a Kansas-based company that markets products under brands such as Hostess, Donettes, Twinkies, CupCakes, Ding Dongs, Zingers, CoffeeCakes, HoHos, and Voortman cookies and wafers. The acquisition includes the brand portfolio along with six production facilities, a distribution centre, and 3,000 staff.
Commenting on the acquisition, JM Smucker chair, president and CEO Mark Smucker said: “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”.
Hostess Brands president and CEO Andy Callahan said: “We believe this is the right partnership to accelerate growth and create meaningful value for consumers, customers and shareholders. Our companies share highly complementary go-to-market strategies, and we are very similar in our core business principles and operations”.
The transaction, which a total enterprise value of approximately $5.6 billion, is scheduled to close in the third quarter of the company’s current fiscal year which ends on 30 April 2024.
Source: JM Smucker