Hostess Brands rise after J.M. Smucker's $5.6 bln buyout deal

Hostess Brands

11/09/2023 15:00

(Updates)
    ** Shares of Twinkies snack cakes maker Hostess Brands
 TWNK.N  jump ~19% to $33.42 in early trade
    ** Jif peanut butter maker J.M. Smucker  SJM.N  says it will
buy TWNK in a $5.6 bln cash and stock deal
    ** SJM down ~7.3% at $131.32
        ** SJM will pay Hostess shareholders $34.25/share,
reflecting a 54% premium on TWNK's closing price on Aug. 24 — a
day before Reuters reported co was exploring a sale
    ** TWNK's stock jumped ~27% since Aug. 25 
    ** "We can’t say we love this transaction from SJM’s
perspective. First, the price is high; we are very surprised
that SJM (or anyone) is paying this amount" - J.P.Morgan analyst
Ken Goldman
    ** Packaged food companies have looked to revamp their
portfolios through mergers and acquisitions to appeal to
customers amid sluggish sales
    ** Up to last close, TWNK was up 25.3% YTD, while SJM was
down 10.7% YTD

 (Reporting by Juveria Tabassum and Ananya Mariam Rajesh in
Bengaluru)
 ((Juveria.Tabassum@thomsonreuters.com;))