The JM Smucker Co has confirmed the completion of the acquisition deal to purchase Hostess Brands, the proprietor of the Twinkies snack cake brand.
In September, it was reported that JM Smucker entered into a definitive agreement to acquire Hostess for around $5.6 billion.
The agreement encompasses Hostess’ assortment of sweet baked snack items, such as Donettes, Twinkies, DingDongs, Zingers, CupCakes, and Mini Muffins, among other products. JM Smucker has additionally gained control of Hostess’ production facilities located in Emporia, Kansas, Burlington, Ontario, Chicago, Illinois, Columbus, Georgia, Indianapolis, Indiana, and Arkadelphia, along with a facility in progress in Arkansas and a distribution center in Kansas.
Around 3,000 employees are set to become part of the company following the recently concluded transaction.
Mark Smucker, chair of the board, president and CEO of JM Smucker Co, said, “We are excited to formally welcome Hostess Brands and for the tremendous opportunity we have with the combined capabilities our businesses offer”.
“Consumers’ increasing reliance on snacking to fit lifestyle needs and convenience choices has expanded the occasions where the category can deliver, and the sweet baked goods category is one of the largest and fastest growing in the industry. With the Hostess acquisition, we have a strong position in this highly attractive segment with popular brands that consumers love.”
Smucker added that the synergy of the businesses provides a “compelling platform” for sustainable growth, offering an expanded distribution model, a “robust” innovation engine and extensive manufacturing capabilities.
He concluded, “This is complemented by the strong retailer relationships in the grocery and mass channels we have at Smucker; along with our advanced commercial organisation, highlighted by our industry-leading consumer insights and marketing and our continuous productivity approach”.
The company will provide further information about the transaction’s impact on its financial outlook when it reports its second quarter fiscal 2024 results on 5 December 2023.
