Connect with us

Hi, what are you looking for?

The Freedom RightThe Freedom Right

Stock

Smucker agrees to buy Twinkie maker Hostess Brands for $5.6 billion

Jelly maker J.M. Smucker is buying Twinkie owner Hostess Brands for $5.6 billion, or $34.25 a share.

Hostess shareholders will receive $30 in cash and .03002 shares of Smucker’s stock for each share of Hostess that they owned. Smucker has also agreed to assume Hostess’s debt. The deal is expected to close in Smucker’s fiscal third quarter, which ends in January.

Smucker’s purchase is the latest in a flurry of deals by Big Food, which is hunting for growth as pandemic gains slip away. Campbell’s Soup recently announced its acquisition of Rao’s pasta sauce owner Sovos Bands for $2.7 billion. M&M’s owner Mars bought Kevin’s Natural Foods in July. And Unilever snapped up frozen yogurt brand Yasso in June.

Shares of Hostess climbed 18% in premarket trading Monday on the announcement. Smucker’s stock fell 7.5%.

As of Friday’s close, shares of Hostess stock have risen 25% this year, giving the company a market value of $3.73 billion. But the company’s shares had already received a significant boost after Reuters reported in late August that it was considering a sale after fielding interest from large food companies, including PepsiCo and Oreo maker Mondelez International.

More from CNBC

Qualcomm says it will supply Apple with 5G modems for iPhones through 2026 Online grocery firm Instacart seeks up to $7.7 billion valuation in IPO U.S. debt is nearly $33 trillion. But some economists say not all debt is bad.

Hostess saw demand for its Twinkies and Ding Dongs slip after raising prices to mitigate higher commodity costs, sparking investor concern and takeover interest from larger rivals. For the full year, the company is anticipating that its volume will decline. Executives paused price hikes.

Its sale to Smucker ends Hostess’s seven-year streak as an independent, publicly traded company. Hostess went public through a merger with a special purpose acquisition company in 2016.

Just three years earlier, Apollo Global Management and Metropoulos & Co. resurrected the company, ending a monthslong Twinkie drought, after acquiring the assets of the company formerly known as Interstate Bakeries.

This post appeared first on NBC NEWS

Enter Your Information Below To Receive Latest News, And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Stock

    A second delivery driver has died in Texas amid record-high temperatures, just as the regulation of workplace heat safety enters a new legal limbo...

    Editor's Pick

    By the IoT Analytics team. A new report from IoT Analytics highlights eight notable trends helping to advance and promote digital twins. Four of...

    Investing

    Vermont Sen. Bernie Sanders, 81, defended President Biden, 80, against voter critiques that he lacks the energy and vigor to continue leading the United...

    Investing

    Political advisers to both President Biden and Vice President Harris were reportedly annoyed with Democrat California Gov. Gavin Newsom over a planned debate with...

    Disclaimer: thefreedomright.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2020-2024 The Freedom Right. All Rights Reserved