J.M. Smucker has completed the transaction to acquire Hostess Brands, the owner of Twinkies snack cakes.
The acquisition includes sweet baked snack brands, including Hostess Donettes, Twinkies, CupCakes, DingDongs, Zingers, CoffeeCakes, HoHos, Mini Muffins and Fruit Pies, and the Voortman cookie brand, the company noted.
It includes manufacturing facilities in Emporia, Kansas, Burlington, Ontario, Chicago, Illinois, Columbus, Georgia, Indianapolis, Indiana, and Arkadelphia, Arkansas – currently under construction – and a distribution facility in Edgerton, Kansas.
Moreover, the deal will see approximately 3,000 Hostess Brands employees joining J.M. Smucker.
‘Expanded Distribution Model’
Mark Smucker, chair of the board, president, and chief executive officer, stated, “Hostess offers an expanded distribution model, including strength in the convenience store channel, a robust innovation engine, and extensive manufacturing capabilities.
“This is complemented by the strong retailer relationships in the grocery and mass channels we have at Smucker, along with our advanced commercial organisation, highlighted by our industry-leading consumer insights and marketing and our continuous productivity approach. The combination of these capabilities positions us to deliver on the aspirations we have for the business.”
J.M. Smucker noted that it would provide further details about the transaction’s impact on its financial outlook when it reports its second-quarter fiscal 2024 results on 5 December 2023.
In September of this year, the company entered into an agreement to acquire Hostess Brands.
In August, the Jif peanut butter-maker raised its annual profit forecast on higher prices of its jams, jellies and pet food products, as well as moderating the costs of packaging and raw materials.
Reflecting an industry-wide trend, the Ohio-based company raised the prices of its products, including packaged jams and jellies, Dunkin’ Coffee and Meow Mix cat food, to offset the higher costs of raw materials, manufacturing and packaging.