Hostess Twinkies and CupCakes are displayed on a retailer shelf on May 17, 2021 in San Anselmo, California.
Justin Sullivan | Getty Images
Jelly maker J.M. Smucker is shopping for Twinkie proprietor Hostess Brands for $5.6 billion, or $34.25 a share.
Hostess shareholders will obtain $30 in money and .03002 shares of Smucker’s inventory for every share of Hostess that they owned. Smucker has additionally agreed to assume Hostess’s debt.
The deal is predicted to shut in Smucker’s fiscal third quarter, which ends in January.
As of Friday’s shut, shares of Hostess inventory have risen 25% this yr, giving the corporate a market worth of $3.73 billion. But the corporate’s shares had already obtained a major enhance after Reuters reported in late August that it was contemplating a sale after fielding curiosity from massive meals firms, together with PepsiCo and Oreo maker Mondelez International.
Hostess noticed demand for its Twinkies and Ding Dongs slip after elevating costs to mitigate larger commodity prices, sparking investor concern and takeover curiosity from bigger rivals. For the complete yr, the corporate is anticipating that its quantity will decline. Executives paused value hikes.
Its sale to Smucker ends Hostess’s seven-year streak as an impartial, publicly traded firm. Hostess went public via a merger with a particular objective acquisition firm in 2016.
Just three years earlier, Apollo Global Management and Metropoulos & Co. resurrected the corporate after buying the property of the corporate previously often called Interstate Bakeries.
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