J. M. SMUCKER CO. ACQUIRES HOSTESS BRANDS INC. – A winning combination

The J. M. Smucker Co. has recently announced to acquire Hostess Brands

The J. M. Smucker Co. has recently announced to acquire Hostess Brands, Inc. for $34.25 per share in a cash and stock transaction, representing a total enterprise value of approximately $5.6bn, which includes approximately $900mn of net debt.

The transaction is anticipated to close in the Company’s current fiscal year ending April 30, 2024. The transaction has been unanimously approved by the boards of directors of
both The J.M. Smucker Co. and Hostess Brands, Inc.

Introduction

The J. M. Smucker Company manufactures and markets branded food and beverage products worldwide. It operates in three segments: U.S. Retail Pet Foods, U.S. Retail Coffee, and U.S. Retail Consumer Foods.

The company offers mainstream roast, ground, single serve, and premium coffee; peanut butter and specialty spreads; fruit spreads, toppings, and syrups; jelly products; nut mix products; shortening and oils; frozen sandwiches and snacks; pet food and pet snacks; and foodservice hot beverage, foodservice portion control, and flour products, as well as dog and cat food, frozen handheld products, juices and beverages, and baking mixes and ingredients. It provides its products under the Meow Mix, Milk-Bone, Pup-Peroni, Canine Carry Outs, Folgers, Café Bustelo, Dunkin’, Folgers, Café Bustelo, 1850, Jif, Smucker’s, Smucker’s Uncrustables, Robin Hood, and Five Roses.

The company sells its products through direct sales and brokers to food retailers, club stores, discount and dollar stores, online retailers, pet specialty stores, natural foods stores and distributors, drug stores, military commissaries, and mass merchandisers. Smucker Company was founded in 1897 and is headquartered in Orrville, Ohio.

Hostess Brands, Inc. develops, manufactures, markets, sells, and distributes snack products in the United States and Canada. The company provides a range of snack cakes, donuts, sweet rolls, breakfast pastries, cookies, snack pies, sweet baked goods, wafers, bread and buns, danishes, honey buns, coffee cakes, and sugar-free products. It offers its products under the Hostess, Dolly Madison, Cloverhill, Voortman, CupCakes, Twinkies, Donettes, Sno Balls, Ding Dongs, Zingers, Ho Hos, and Big Texas brands.

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Executive Summary

Deal Overview

Business Rationale

Company Overview – Hostess Brands, Inc

Company Overview – J. M. Smucker Co

No of Pages: 76

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