Benzinga - by Benzinga Insights, Benzinga Staff Writer.
JM Smucker (NYSE:SJM) has announced an acquisition of Hostess Brands (NASDAQ:TWNK) that is expected to be completed April 30, 2024.
Under the terms of the agreement, JM Smucker has agreed to give Hostess Brands $5.60 billion in cash & stock in exchange for TWNK stock.
About The Companies Involved J.M.
Hostess Brands Inc is a leading sweet snacks company focused on developing, manufacturing, marketing, selling, and distributing snacks in North America, providing a wide range of snack cakes, donuts, sweet rolls, breakfast pastries, cookies, snack pies, and related products. The Company has one reportable segment, which is Snacking.
How An Acquisition Works An acquisition is when one company, called the acquiring company, buys most or all of another company's, or target company's, shares to gain ownership. Buying more than 50% of a company's stock allows the the acquirer to make decisions without the approval of the company's shareholders.
An acquisition can potentially lead to a merger with the parent company, which makes it similar to a merger. This is why the two terms are commonly grouped together as mergers and acquisitions (M&A). However, in a merger, the leadership & operations of both companies usually change dramatically, while during an acquisition this is less likely to happen.
Make sure to follow our mergers & acquisitions calendar to stay-up-to-date on the most recent M&A deals.
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