Food products manufacturer JM Smucker has signed a definitive agreement to acquire Hostess Brands for US$34.25 per share, representing about $5.6 billion. 

The transaction includes Hostess Brands’ sweet baked goods brands such as Hostess Donettes, Twinkies, and CupCakes and the Voortman cookie brand, along with its manufacturing facilities, a distribution facility, and about 3000 employees.

JM Smucker says the acquisition will expand the company’s family of brands, allowing it to deliver on consumer needs across occasions with greater convenience and selection.

Hostess Brands is expected to contribute net sales of approximately $1.5 billion and an estimated mid-single-digit annual growth rate.

“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, including its strong convenience store distribution and leading innovation pipeline, combined with our strong commercial organisation and consistent retail execution across channels to drive continued growth,” said Mark Smucker, chair of the board, president and CEO at JM Smucker.

Andy Callahan, president and CEO of Hostess Brands, added the deal represents an “exciting chapter” and a “right partnership” to boost growth and create meaningful value.

The transaction is expected to close in the third quarter of JM Smucker’s fiscal year ending April 30, 2024.

JM Smucker manufactures coffee, consumer foods, dog snacks and cat food products with brands including Folgers, Dunkin’, Cafe Bustelo, Jif, Smucker’s Uncrustables, Smucker’s, Milk-Bone and Meow Mix.