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:2024-12-23 23:40:35
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! (68822)
Related
- John Krasinski named People's Sexiest Man Alive for 2024
- Terry Crews' Doctor Finds Potentially Cancerous Polyps During His Filmed Colonoscopy
- Jason Aldean blasts cancel culture, defends Try That in a Small Town at Cincinnati concert
- Someone could steal your medical records and bill you for their care
- 13 Skincare Gifts Under $50 That Are Actually Worth It
- Traps removed after no sign of the grizzly that killed a woman near Yellowstone
- 500-year-old manuscript signed by Spanish conquistador Hernando Cortés returned to Mexico
- 101.1 degrees? Water temperatures off Florida Keys currently among hottest in the world
- NATO’s Rutte calls for more Western support for Ukraine, warns of Russian alliances
- USWNT embraces pressure at World Cup; It 'has been fuel for this team,' players say
Ranking
- Are Ciara Ready and Russell Wilson Ready For Another Baby? She Says…
- Heirloom corn in a rainbow of colors makes a comeback in Mexico, where white corn has long been king
- Bryan Cranston slams artificial intelligence during SAG-AFTRA rally: 'We ask you to hear us'
- Chicago Bears' Justin Fields doesn't want to appear in Netflix's 'Quarterback.' Here's why
- Watch out, Temu: Amazon Haul, Amazon's new discount store, is coming for the holidays
- Vermont-based Phish to play 2 shows to benefit flood recovery efforts
- Wildfires that killed at least 34 in Algeria are now 80% extinguished, officials say
- Bryan Cranston slams artificial intelligence during SAG-AFTRA rally: 'We ask you to hear us'
Recommendation
-
UConn, Kansas State among five women's college basketball games to watch this weekend
-
Colorado students at private career school that lost accreditation get federal loan relief
-
‘It was like a heartbeat': Residents at a loss after newspaper shutters in declining coal county
-
Swimmer Katie Ledecky ties Michael Phelps' record, breaks others at World Championships
-
NBA today: Injuries pile up, Mavericks are on a skid, Nuggets return to form
-
How Sofia Richie Will Follow in Big Sister Nicole Richie’s Fashion Footsteps
-
6 injured as crane partially collapses in midtown Manhattan
-
U.S. sees biggest rise in COVID-19 hospitalizations since December