The JM Smucker Co has announced the closing of the transaction to acquire Hostess Brands, owner of the Twinkies snack cake brand.
As reported by FoodBev in September, JM Smucker signed a definitive agreement to acquire Hostess for approximately $5.6 billion.
The deal includes Hostess’ portfolio of sweet baked snack products, including Donettes, Twinkies, DingDongs, Zingers, CupCakes and Mini Muffins among others. JM Smucker has also acquired Hostess’ manufacturing facilities in Emporia, Kansas, Burlington, Ontario, Chicago, Illinois, Columbus, Georgia, Indianapolis, Indiana and Arkadelphia, as well as a facility currently under construction in Arkansas and a distribution facility in Kansas.
Approximately 3,000 employees will join the company in conjunction with the now completed 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.
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