At what enterprise value was HOSTESS BRANDS, INC. acquired in 2023?

During the acquisition of HOSTESS BRANDS, INC. by THE J.M. SMUCKER CO. in 2023, the transaction's Enterprise Value is estimated to be in the range of 3b - 100b USD.

What was the EV/EBITDA of HOSTESS BRANDS, INC. when it was acquired by THE J.M. SMUCKER CO.?

The estimated EV/EBITDA multiple for HOSTESS BRANDS, INC. is in the range of 15x - 25x.

When was HOSTESS BRANDS, INC. acquired by THE J.M. SMUCKER CO.?

HOSTESS BRANDS, INC. was acquired by THE J.M. SMUCKER CO. in 2023.

What was the revenue of HOSTESS BRANDS, INC. at the time of the deal?

The revenue of HOSTESS BRANDS, INC. at the time of the deal is estimated to be in the range of 1b - 3b USD.

What was the EBITDA of HOSTESS BRANDS, INC. during the acquisition?

HOSTESS BRANDS, INC.'s EBITDA is estimated to be in the range of 250M - 500M USD.

How is the data for the HOSTESS BRANDS, INC. acquisition sourced and is it reliable?

Mynth data is contributed by a professional community of M&A and Private Equity experts. Each transaction, including the HOSTESS BRANDS, INC. deal, is systematically cross-verified by our team using private deal documents and official sources. You can also find the official press release for this transaction here: https://www.rbccm.com/en/expertise/study.page?dcr=templatedata/rbccm/casestudy/data/2024/04/smuckers_sets_the_table_for_strategic_growth

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Home Database AgriFoodHOSTESS BRANDS, INC.

09/2023

HOSTESS BRANDS, INC. acquired by THE J.M. SMUCKER CO.

UNITED STATES Food Processing / Food Products EV 3b - 100b USD

Context

The J.M. Smucker Co. has entered into a definitive agreement to acquire Hostess Brands. This transformative transaction expands Smucker's presence in the fast-growing "sweet baked goods" category, adding iconic brands like Twinkies to its portfolio. The deal structure involves a mix of cash and stock, with Smucker paying $34.25 per share. The acquisition is expected to be accretive to margins and earnings in the first year, with estimated annual run-rate synergies of $100 million to be realized within two years. It also significantly enhances Smucker's distribution capabilities in the convenience store channel, where Hostess is a market leader.

HOSTESS BRANDS, INC., which reported an EBITDA margin of in 2023, is valued in this transaction at an EV/EBITDA multiple of , representing a to the average currently observed in the AgriFood sector (10.7x).

-> Deep-dive in AgriFood market trends

Target

Hostess Brands is a leading North American sweet snacks company, famous for its portfolio of iconic brands such as Twinkies, Ding Dongs, Ho Hos, Donettes, and Voortman cookies. Headquartered in Kansas, the company focuses on the "indecent snacking" segment, offering convenient, pre-packaged treats. Hostess has a unique strength in the convenience store (C-Store) channel and a highly efficient distribution model ("warehouse-to-shelf"). Before the acquisition, it was a publicly traded company (NASDAQ: TWNK) that had successfully revitalized its brand portfolio following a previous restructuring.

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2022

Similar deals in Food Processing

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Date	Acquirer	Target	Country	Sector
11/2023	DBAY ADVISORS	FINSBURY FOOD GROUP	UNITED KINGDOM	Food Products
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08/2023	GROUPE AVRIL	HARI&CO	FRANCE	Food Products
07/2023	MARS	KEVIN'S NATURAL FOODS	UNITED STATES	Food Products
07/2023	ROYAL UNIBREW	VRUMONA	NETHERLANDS	Soft Drinks
07/2023	MALTERIES SOUFFLET	UNITED MALT GROUP	AUSTRALIA	Food Processing
06/2023	MITSUI & CO	EURICOM	ITALY	Food Products
06/2023	HEINEKEN	OEDIPUS	NETHERLANDS	Wines & Spirits
06/2023	RIELLO INVESTIMENTI PARTNERS	IL FORNAIO DEL CASALE	ITALY	Bakery / Pastry
06/2023	3I	PANELTO FOODS	IRELAND	Bakery / Pastry

REFERENCES

Valuation range: EV 3b - 100b USD

Revenue range: 1b - 3b USD

EBITDA range: 250M - 500M USD

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of HOSTESS BRANDS, INC. by THE J.M. SMUCKER CO. are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.