The deal came after Smucker beat out General Mills, the parent of brands including Betty Crocker, Pillsbury and Cheerios, to make the purchase, The Wall Street Journal reported . The jelly making giant said in a statement that the sale “expands the Company’s offering of beloved brands in growing categories and accelerates its focus on convenient consumer occasions.”
Hostess stockholders will get $30 in cash and .03002 shares of Smucker’s stock for each Hostess stock they own, company officials said. They expect the transaction to close in the spring of 2024.
“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,” Andy Callahan, president and CEO of Hostess Brands, said Monday in a statement . “We believe this is the right partnership to accelerate growth and create meaningful value for consumers, customers and shareholders.”
The sale marked an extraordinary turnaround for Hostess, which filed for bankruptcy twice. The company stopped making treats following a bankruptcy filing and Bakery Workers union strike in 2012, though a pair of investment firms brought the company out of liquidation and returned the brand’s snacks to store shelves in July 2013, CNN and the Journal reported.
Founded in 1897 as a company selling cider and apple butter, The J.M. Smucker Company has grown to include Jif peanut butter, Milk-Bone dog treats and Folgers coffee, among others.
The deal announced Monday came as other food brands have announced mergers aimed at building their portfolios, according to Reuters . Last month, the Campbell Soup Company announced it will buy Sovos Brands, the maker of Rao’s sauces and noosa yogurt. In June, Unilever said it had reached a deal to acquire frozen yogurt brand Yasso.
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