Get All Access for $5/mo

Hostess Brands Finds a New Owner in Jam Giant J.M. Smucker in $5.6 Billion Deal Hostess Brands is known as the maker of Twinkies, Ding Dongs, and other packaged treats.

By Sam Silverman

Key Takeaways

  • Hostess shares grew by almost 20% following the news.
  • The sales comes after years of financial hardships for Hostess Brands.

Opinions expressed by Entrepreneur contributors are their own.

J.M. Smucker is about to be the hostess with the mostess.

The jam giant announced on Monday that it is purchasing Hostess Brands, known as the maker of Twinkies, HoHos, and other packaged baked goods, for a whopping $5.6 billion.

As part of the deal, which valued the company at $34.25 a share, Smucker will take on Hostess' outstanding debt of about $900 million, according to CNBC. Hostess shareholders can expect to receive $30 in cash and a .03002 share of Smucker's stock for each Hostess share they own.

RELATED: Smucker's Employees Actually Want to Go Into the Office — Here's Why The Company's Return-to-Office Policy Works

Following the news, Hostess shares grew by 19% in premarket trading.

The deal is expected to solidify in January during Smucker's fiscal third quarter.

What is the history of the Hostess company?

Hostess has been in business for 94 years, but not without financial hardships.

Created in 1919, the company was owned by Continental Baking Co. until 1995 when Interstate Bakeries Corp. acquired Continental Banking in a $330 million deal, per Fox News.

Under Interstate Bakeries, the company filed for Chapter 11 bankruptcy protection in 2004 and later renamed itself Hostess Brands.

The company filed for bankruptcy in 2012 amid the Bakery Workers union strike and paused production of its products. That was until private equity firms Apollo Global Management and Metropoulos & Co. saved the brand by acquiring the company's assets, bringing Hostess back to stores in July 2013, per CNN.

Then in 2016, Hostess became an independent publicly traded company following a merger with another private equity firm, Gores Group.

"I am extremely proud of the entire Hostess Brands team for the legacy they created in building a premier snacking company and driving industry-leading returns for our investors," Andy Callahan, President and Chief Executive Officer of Hostess Brands said in a press release.

"We believe this is the right partnership to accelerate growth and create meaningful value for consumers, customers, and shareholders," Callahan said. "Our companies share highly complementary go-to-market strategies, and we are very similar in our core business principles and operations."

Sam Silverman

Content Strategy Editor

Sam Silverman is a content strategy editor at Entrepreneur Media. She specializes in search engine optimization (SEO), and her work can be found in The US Sun, Nicki Swift, In Touch Weekly, Life & Style and Health. She writes for our news team with a focus on investigating scandals. Her coverage and expertise span from business news, entrepreneurship, technology, and true crime, to the latest in entertainment and TV news. Sam is a graduate of Lehigh University and currently resides in NYC. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business News

How to Be a Billionaire By 25, According to a College Dropout Turned CEO Worth $1.6 Billion

Austin Russell became the world's youngest self-made billionaire in 2020 at age 25.

Living

Taylor Swift Has a Lucky Number. And She's Not the Only High Performer Who Leans Into Superstitions to Boost Confidence.

Even megastars like Swift need a little extra something to get them in the right mindset when it is game time.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Marketing

SEO Trends You Need to Be Aware of Right Now, According to a Seasoned Pro

Navigate the future of search engine optimization to elevate your online presence and drive meaningful engagement.