In a significant development in the world of American snacking, JM Smucker, the renowned food giant famous for its fruit preserves and Jif peanut butter, is set to acquire classic US snack maker Hostess Brands in a monumental $5.6 billion (£4.5 billion) deal.
This acquisition is poised to reshape the sweet snacking landscape and drive further growth for both companies.
Smucker’s CEO, Mark Smucker, expressed his enthusiasm for the acquisition, stating, “With this acquisition, we are adding an iconic sweet snacking platform… to drive continued growth.” The move signals a strategic expansion for Smucker, known for its staple food products.
Hostess Brands, founded in 1930 and headquartered in Lenexa, Kansas, boasts a rich history of producing beloved household brands, including Twinkies, Donettes, Ho Hos, Ding Dongs, Zingers, and Voortman cookies and wafers. The news of the acquisition has already led to a surge in Hostess Brands’ stock prices, reflecting the market’s positive response to the deal.
The acquisition attracted attention from several major players in the American food industry, such as PepsiCo, Mondelez International (makers of Oreo), and General Mills (producers of Cheerios), indicating the allure of Hostess Brands’ iconic snack portfolio.
Smucker anticipates finalizing the deal during the third quarter of its current financial year, marking a significant move in the food manufacturing business in the United States.
This acquisition follows other major takeovers in the industry this year, including Campbell’s Soup’s purchase of Sovos Brands, the owner of Rao’s pasta sauce, for $2.7 billion, and Mars’ acquisition of Kevin’s Natural Foods.
As the US food manufacturing landscape continues to evolve, this acquisition will undoubtedly reshape the industry, solidifying Smucker’s presence in the sweet snacking sector while enhancing the iconic status of Hostess Brands’ products.
Hostess Brands’ shares surged by more than 19% at the close of the New York trading day, reflecting the positive market sentiment surrounding this monumental deal, while Smucker’s shares ended the day with a 7% decline.