Hostess Brands, Inc. acquired by The J. M. Smucker Company
The J. M. Smucker Company acquired Hostess Brands, Inc., a US sweet baked goods and snacks brand, on Nov 7, 2023.
Transaction summary
- Target
- Hostess Brands, Inc.
- Acquirer
- The J. M. Smucker Company
- Seller
- -
- Announced
- 2023-09-11
- Geography
- United States
- Type
- Acquisition
- Deal type
- Control
- Stake acquired
- 100%
- First added
- 2026-10-04
- Latest update
- 2026-10-21
Value and multiples
100% enterprise value
USD 5.6B
100% enterprise value | USD
Basis: Public source
Reported price is assumed to be 100% EV unless stated otherwise. Partial-stake estimates are qualified in the basis notes.
EV / revenue
3.9x
Period: Fiscal Year 2023 Projection
Basis: Derived from source data
EV / EBITDA
17.2x
EBITDA: normalised / adjusted
Basis: Public source
Basis
- The announced enterprise value was approximately USD 5.6bn, including approximately USD 900m of Hostess net debt. Consideration was USD 30.00 cash plus 0.03002 Smucker common shares per Hostess share; the announced USD 34.25 per-share value used Smucker’s September 8, 2023 closing share price and is not aggregate consideration. Hostess management’s fiscal-year 2023 projections were USD 1,423m net revenue and USD 325m adjusted EBITDA; USD 5.6bn / USD 1,423m projected net revenue gives approximately 3.9x. The acquisition announcement reported 17.2x estimated full-year 2023 adjusted EBITDA; the 13.2x figure includes anticipated run-rate synergies of USD 100m and is not used. Synergies were expected to be half realized in fiscal 2025, with the full annualized amount in fiscal 2026. Approximately USD 1.5bn of annual net sales is separately stated without a specified fiscal period.
Source summary
J. M. Smucker acquisition conference-call transcript
ConfirmedThe total enterprise value of the acquisition is approximately $5.6 billion
Open sourceThe J. M. Smucker Company Form S-4 registration statement
ConfirmedNet Revenue $ 1,423 $ 1,523 $ 1,617
Open sourceThe J. M. Smucker Company Form 8-K—completion of Hostess acquisition
Confirmedcompleted the previously announced acquisition of Hostess Brands, Inc.
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