• About
  • Advertise
  • Careers
  • Contact
Thursday, September 28, 2023
  • Login
No Result
View All Result
American CEO Club
  • Home
  • The Big Idea
  • Entrepreneurs
  • Finance
  • Growth Strategies
  • Inspiration
  • Leadership
  • Marketing
    • Social Media
  • Technology
  • Starting a Business
  • Home
  • The Big Idea
  • Entrepreneurs
  • Finance
  • Growth Strategies
  • Inspiration
  • Leadership
  • Marketing
    • Social Media
  • Technology
  • Starting a Business
No Result
View All Result
American CEO Club
No Result
View All Result
Home Leadership

JM Smucker Buys Hostess Brands for $5 Billion Amid Bankruptcy

September 11, 2023
in Leadership
Reading Time: 2 mins read
A A
Share on FacebookShare on Twitter


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.”

Related Posts

Vivek Ramaswamy and Entrepreneurs Who Have Run for President

Vivek Ramaswamy and Entrepreneurs Who Have Run for President

by Staff
September 27, 2023
0

Vivek Ramaswamy is the latest entrepreneur pivoting to politics. The 2024 Republican presidential candidate is one of a long...

3 Valuable Leadership Lessons from a Blind Entrepreneur

3 Valuable Leadership Lessons from a Blind Entrepreneur

by Staff
September 27, 2023
0

Opinions expressed by Entrepreneur contributors are their own. If you've run a business for any length of time, you...

Stream Dog-Friendly Content for Your homebound Pup — Just $150 for a Lifetime Subscription

Stream Dog-Friendly Content for Your homebound Pup — Just $150 for a Lifetime Subscription

by Staff
September 27, 2023
0

Disclosure: Our goal is to feature products and services that we think you'll find interesting and useful. If you...

Cash Flow King Podcaster Matt Motil Charged in Ponzi Scheme

Cash Flow King Podcaster Matt Motil Charged in Ponzi Scheme

by Staff
September 26, 2023
0

The host of the "Cash Flow King" podcast, which was available on Spotify and YouTube, might be more of...

Are Investors Buying Up Stock in BlackBerry (BB) Before Earnings Hit?

Are Investors Buying Up Stock in BlackBerry (BB) Before Earnings Hit?

by Staff
September 26, 2023
0

BlackBerry Limited (BB), once a dominant force in the smartphone industry, has experienced a significant transformation throughout the years....

Invest in a Python Education for only $10

Invest in a Python Education for only $10

by Staff
September 25, 2023
0

Disclosure: Our goal is to feature products and services that we think you'll find interesting and useful. If you...

Next Post
Traditional Banks Are Set to Change the Crypto Market Forever — Here’s How

Traditional Banks Are Set to Change the Crypto Market Forever — Here's How

Leave a Reply Cancel reply

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

Recommended

How Managers Can Make Time for Their Own Development

How Managers Can Make Time for Their Own Development

3 months ago
Why Does Jay Soloff Love This Income Stock?

Why Does Jay Soloff Love This Income Stock?

3 days ago

Popular News

    © 2022 American CEO Club

    No Result
    View All Result
    • Home
    • The Big Idea
    • Entrepreneurs
    • Finance
    • Growth Strategies
    • Inspiration
    • Leadership
    • Marketing
      • Social Media
    • Technology
    • Starting a Business

    © 2021 American CEO Club

    Welcome Back!

    Login to your account below

    Forgotten Password?

    Retrieve your password

    Please enter your username or email address to reset your password.

    Log In