Current:Home > FinanceHostess stock price soars after Smucker reveals plans to purchase snack maker for $5.6B-LoTradeCoin
Hostess stock price soars after Smucker reveals plans to purchase snack maker for $5.6B
View Date:2024-12-24 07:53:57
The J.M. Smucker Co. is set to acquire Hostess Brands, the snack maker behind products like Twinkies, HoHos and Donettes, for approximately $5.6 billion including debt.
The deal is meant to expand Smucker’s “offering of beloved brands in growing categories and accelerates its focus on convenient consumer occasions,” according to a Monday news release.
Smucker has agreed to pay $34.25 per share in cash and stock and take on $900 million of net debt, making the deal worth $4.6 billion excluding debt. The deal will transfer a number of brands to Smucker’s portfolio, as well as roughly 3,000 employees and manufacturing and distribution facilities in Kansas, Ontario, Illinois, Georgia, Indiana and Arkansas.
The transaction has already received approval from the Smucker and Hostess boards and is expected to close by the end of April 2024.
What brands does Smucker own?
The deal “represents a compelling expansion” to Smucker’s brands, according to CEO Mark Smucker. In addition to its namesake brand, Smucker owns coffee brands Folgers, Dunkin’ and Café Bustelo; food brands Jif and Uncrustables; and pet food brands Milk-Bone and Meow Mix, among others.
"With this acquisition, we are adding an iconic sweet snacking platform; enhancing our ability to deliver brands consumers love and convenient solutions they desire; and leveraging the attributes Hostess Brands offers,” Smucker said in the release.
A turnaround after Hostess bankruptcy filings
The sale is a major turnaround for Hostess, which has filed for bankruptcy twice in the past two decades. The company went public in 2016 after private investors rehabbed the company.
"We believe this is the right partnership to accelerate growth and create meaningful value for consumers, customers and shareholders,” Hostess CEO Andy Callahan said in the release. “Our companies share highly complementary go-to market strategies, and we are very similar in our core business principles and operations."
Stock price moves after Hostess acquisition announcement
Hostess shareholders are set to receive $30 in cash from the transaction and .03002 shares of Smucker’s common stock per each Hostess share owned.
Hostess shares were trading up more than 19% at $33.46 Monday morning, while Smucker shares dipped more than 6% at $131.67.
veryGood! (81497)
Related
- Jon Gruden joins Barstool Sports three years after email scandal with NFL
- Norfolk Southern, victims reach $600M settlement for 2023 East Palestine train derailment
- Experts warn not to look at solar eclipse with your phone camera — but share tricks for safely taking pictures
- Stock market today: Asia stocks rise with market focus on signs of interest rate cut
- Video shows masked man’s apparent attempt to kidnap child in NYC; suspect arrested
- Deceased infant, injured child found alone on Los Angeles freeway, reports say
- Towboat owner gets probation in 2018 river oil spill along West Virginia-Kentucky border
- Wyoming’s Wind Industry Dodged New Taxes in 2024 Legislative Session, but Faces Pushes to Increase What it Pays the State
- Republican Rep. Juan Ciscomani wins reelection to Arizona US House seat
- Solar flares reported during total eclipse as sun nears solar maximum. What are they?
Ranking
- Georgia State University is planning a $107M remake of downtown Atlanta
- Out of the darkness: Babies born and couples tie the knot during total eclipse of 2024
- NASA breaks down eclipse radiation myths
- Florida woman charged with freeway shootings amid eclipse said she was 'directed by God'
- Here's Your First Look at The White Lotus Season 3 With Blackpink’s Lisa and More Stars
- Books most challenged in 2023 centered on LGBTQ themes, library organization says
- Former Atlanta chief financial officer pleads guilty to stealing money from city for trips and guns
- Mississippi Senate blocks House proposal to revise school funding formula
Recommendation
-
NFL overreactions: New York Jets, Dallas Cowboys going nowhere after Week 10
-
Effort to enshrine right to abortion in Maine Constitution comes up short in first votes
-
2 killed at Las Vegas law office; suspected shooter takes own life, police say
-
Huskies repeat. Connecticut cruises past Purdue to win second national title in row
-
13 Skincare Gifts Under $50 That Are Actually Worth It
-
Celebrities You Didn't Know Were on Cameo, Including Reality Stars, Athletes, Comedians & More
-
Person comes forward to claim $1.3 billion Powerball jackpot in Oregon
-
Did you look at the solar eclipse too long? Doctors explain signs of eye damage