News

Hostess Brands Acquired by J.M. Smucker in $5.6 Billion Deal

1 Mins read

Shares of Hostess Brands Inc. (TWNK) surged 16.7% to a record high following the announcement of its acquisition by J.M. Smucker Co. (SJM) in a cash and stock deal worth $5.6 billion. However, J.M. Smucker’s shares saw an 11.0% decline ahead of the market open.

The Deal

Under the agreement, Hostess shareholders will receive $30.00 in cash and 0.03002 J.M. Smucker shares for each Hostess share they own. This values each Hostess share at $34.25, presenting a significant 21.8% premium to Friday’s closing price of $28.11.

Expected Closure

The acquisition is expected to be finalized during the third quarter of J.M. Smucker’s fiscal year, which concludes on April 30, 2024. Reports from The Wall Street Journal had already hinted at the possibility of this deal over the weekend.

Positive Outlook

Hostess Chief Executive Andy Callahan expressed confidence in the partnership, stating that it will generate growth and deliver substantial value for consumers, customers, and shareholders.

Market Performance

Shares of Hostess Brands had already climbed 25.3% year-to-date by Friday, while J.M. Smucker’s stock had experienced a 10.7% decline. In contrast, the S&P 500 had recorded a solid 16.1% gain.

Related posts
News

California Governor Vetoes Bill Requiring Human Drivers in Self-Driving Trucks

2 Mins read
Sacramento, Calif. – California Governor Gavin Newsom has vetoed a bill that would have mandated the presence of human drivers in self-driving…
News

Your Social Security Checks are Safe

2 Mins read
Don’t worry, the impending federal government shutdown will not put your monthly Social Security checks in jeopardy. This is certainly a relief…
News

European Stocks Experience Decrease

1 Mins read
The European stock market saw a decline on Friday, with the Stoxx Europe 600 index finishing down 0.31% at 453.26. Individual Index…

Leave a Reply

Your email address will not be published. Required fields are marked *