Smucker Agrees to Acquire Hostess Brands for Roughly $5.6 Billion

Jelly maker J.M. Smucker is buying Twinkie owner Hostess Brands for $5.6 billion, or $34.25 a share.

Hostess shareholders will receive $30 in cash and .03002 share of Smucker’s stock for each share of Hostess that they owned. Smucker has also agreed to assume Hostess’ debt of roughly $900 million. The deal is expected to close in Smucker’s fiscal third quarter, which ends in January.

Smucker’s purchase is the latest in a flurry of deals by Big Food, which is hunting for growth as Covid pandemic gains slip away. Campbell’s Soup recently announced its acquisition of Rao’s pasta sauce owner Sovos Bands for $2.7 billion. M&M’s owner Mars bought Kevin’s Natural Foods in July. And Unilever snapped up frozen yogurt brand Yasso in June.

Read the source article at CNBC