Jelly maker J.M. Smucker is buying Twinkie owner Hostess Brands for $5.6 billion, or $34.25 a share.
According to a report on CNBC, Hostess shareholders will receive $30 in cash and .03002 share of Smucker’s stock for each share of Hostess that they owned. Smucker also agreed to assume Hostess’ debt of roughly $900 million. The deal is expected to close in Smucker’s fiscal third quarter, which ends in January.
It’s the latest deal for Big Food, which is hunting for growth as Covid pandemic gains slip away. Campbell’s Soup recently announced its acquisition of Rao’s pasta sauce owner Sovos Bands for $2.7 billion. M&M’s owner Mars bought Kevin’s Natural Foods in July. And Unilever snapped up frozen yogurt brand Yasso in June, according to CNBC.
Shares of Hostess climbed 18% in premarket trading Monday on the announcement. Smucker’s stock fell 7.5%.