The J.M. Smucker Co. to acquire Hostess Brands

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The J.M. Smucker Co. to acquire Hostess Brands

11 Sep 2023

Annie Hollon

Annie Hollon is a journalist, copywriter and social media strategist from the Dallas, Texas area. She found a love for magazine writing during her time at the University of Alabama where she graduated with a Bachelor of Arts, double majoring in public relations and English. Beyond writing, you can find her expanding her library, attempting to teach herself the guitar and trying new hobbies.

ORRVILLE, OH — The J.M. Smucker Co. has entered a definitive agreement to acquire Lenexa, KS-based Hostess Brands, the parent company of Hostess Snacks and Voortman Bakery. The enterprise value is approximately $5.6 billion, which includes almost $900 million of net debt.

“I am extremely proud of the entire Hostess Brands team for the legacy they created in building a premier snacking company and driving industry-leading returns for our investors,” said Andy Callahan, president and CEO of Hostess Brands. “Today represents another exciting chapter for our company as we combine our iconic snacking brands with The J.M. Smucker Co.’s family of beloved brands. We believe this is the right partnership to accelerate growth and create meaningful value for consumers, customers and shareholders.”

The acquisition includes the sweet goods brands Donettes, Twinkies, CupCakes, DingDongs, Zingers, CoffeeCakes, HoHos, Mini Muffins and Fruit Pies, and the Voortman cookie brand. It also includes Hostess Brands’ manufacturing facilities in Emporia, KS; Burlington, Ontario; Chicago; Columbus, GA; Indianapolis; and Arkadelphia, AR, which is currently under construction; and a distribution center in Edgerton, KS.

In acquiring Hostess, the food brand will expand its sweet baked goods category, accelerate its convenience occasion strategy and strengthen its financial profile.

“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 offers, including its strong convenience store distribution and leading innovation pipeline, combined with our strong commercial organization and consistent retail execution across channels to drive continued growth,” said Mark Smucker, chair of the board, president and CEO of The J.M. Smucker Co. “Our organization is well positioned to deliver on the great potential our expanded family of brands offers, as has been reflected by our history of growth through acquisition and the successful integration of new categories to our business. We look forward to this exciting new chapter for The J.M. Smucker Co.”

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