Get in Touch

Redactor

->Contact us

Twinkies Sold! JM Smucker Acquires Hostess Brands for $5.6 Billion

Twinkies Sold! JM Smucker Acquires Hostess Brands for $5.6 Billion

This is a lucrative deal for Hostess, which also distributes the JM Smucker peanut butter and jelly empire: the legendary maker of Twinkies, Ho-Hos, Ding Dongs, Zingers, and other long-lasting sweet treats is being acquired by the leading snack conglomerate.

The total value of the deal is a whopping $5.6 billion—a massive win for Hostess, which has experienced bankruptcy not once, but twice in the past two decades. This includes several months when Twinkies disappeared from the shelves.

Wear them, toss them, launch them: 10 things to do with Twinkies SALT Wear them, toss them, launch them: 10 things to do with Twinkies Smucker had to compete to catch Hostess, beating out several major competitors, reportedly including PepsiCo, Oreo maker Mondelez International, and Cheerios maker General Mills.

Hostess, which introduced Twinkies in 1930, first filed for bankruptcy in 2004 ("blame the nation's low-carb diet craze," writes The Chicago Tribune). The company reemerged a few years later in the form of private equity but filed for Chapter 11 again in 2012 (blaming its union contracts, as investigated by The Atlantic).

Hostess was broken up, and its snack and cake-making business was sold for $410 million. In 2016, it became a public company under the ticker TWNK.

In recent years, Hostess stock has more than doubled as people spent more on snacks due to high demand and higher prices. Recently, sales have dipped slightly, sparking competitors' appetite for acquisition.

JM Smucker, whose brands include Jif peanut butter and Folgers coffee, praised its CEO Mark Smucker for having "strong distribution in everyday demand stores and a leading innovation portfolio."

 

SNYDE

News

Tags