Hostess, the maker of Twinkies and Ho Hos, is being purchased by J.M. Smucker in a $5.6 billion deal.
The two companies announced the transaction Monday, with the jelly maker saying that the purchase expands Smucker's offerings of "beloved brands in growing categories and accelerates its focus on convenient consumer occasions."
Shares of Hostess (TWNK) soared 19% in early trading. The stock is already up 20% for the month after reports surfaced that the 94-year-old company was for sale. Hostess stockholders will get $30 in cash along with .03002 shares of Smucker's stock for each Hostess share they own, with the deal expected to close in 2024.
"We believe this is the right partnership to accelerate growth and create meaningful value for consumers, customers and shareholders," Hostess CEO Andy Callahan said in a statement. "Our companies share highly complementary go-to market strategies, and we are very similar in our core business principles and operations."
In addition to Twinkies, Hostess makes a number of sweet treats including Zingers, Snoballs and Ding Dongs. It has even branched out to making cereals.
Adding Hostess bolsters Smucker's portfolio, which already contains a variety of sugary snacks, including Jif peanut butter, Uncrustables and its namesake Smucker's jelly and jams. Smucker said the acquisition positions it to "deliver on consumer needs across occasions with greater convenience and selection."
A purchase is a remarkable turnaround for Hostess, which has filed for bankruptcy twice during its existence. Hostess was founded in 1919 and started making Twinkies in 1930. It filed for bankruptcy in January 2012, and stopped making its products, including Twinkies, in November of that year during a strike by Bakery Workers union. The firms of Apollo Global Management and C. Dean Metropoulos & Co. returned Twinkies to store shelves in July 2013 after acquiring the asset from Hostess.
In 2016, the company was sold in a deal that took the brand public again.
