The VaultX ExchangeJ.M. Smucker Co. is set to acquire Hostess Brands, the snack maker behind products like Twinkies, HoHos and Donettes, for approximately $5.6 billion including debt. 

The deal is meant to expand Smucker’s “offering of beloved brands in growing categories and accelerates its focus on convenient consumer occasions,” according to a Monday news release. 

Smucker has agreed to pay $34.25 per share in cash and stock and take on $900 million of net debt, making the deal worth $4.6 billion excluding debt. The deal will transfer a number of brands to Smucker’s portfolio, as well as roughly 3,000 employees and manufacturing and distribution facilities in Kansas, Ontario, Illinois, Georgia, Indiana and Arkansas. 

The transaction has already received approval from the Smucker and Hostess boards and is expected to close by the end of April 2024.

What brands does Smucker own?

The deal “represents a compelling expansion” to Smucker’s brands, according to CEO Mark Smucker. In addition to its namesake brand, Smucker owns coffee brands Folgers, Dunkin’ and Café Bustelo; food brands Jif and Uncrustables; and pet food brands Milk-Bone and Meow Mix, among others. 

"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 Brands offers,” Smucker said in the release. 

A turnaround after Hostess bankruptcy filings

The sale is a major turnaround for Hostess, which has filed for bankruptcy twice in the past two decades. The company went public in 2016 after private investors rehabbed the company.

"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 the release. “Our companies share highly complementary go-to market strategies, and we are very similar in our core business principles and operations."

Stock price moves after Hostess acquisition announcement

Hostess shareholders are set to receive $30 in cash from the transaction and .03002 shares of Smucker’s common stock per each Hostess share owned.

Hostess shares were trading up more than 19% at $33.46 Monday morning, while Smucker shares dipped more than 6% at $131.67.