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

Hostess Brands

11/09/2023 13:29

(Updates)
    ** Shares of Twinkies snack cakes maker Hostess Brands
 TWNK.N  jump ~17% to $32.90 premarket
    ** 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 ~9% at $128.92 premarket
    ** TWNK's stock has jumped ~27% since Aug. 25, when Reuters
reported co was exploring a sale after fielding takeover
interest from major food makers
    ** J.M. Smucker will pay Hostess shareholders $34.25 per
share, reflecting a 54% premium on the stock's closing price on
the day before the report surfaced
        ** Equity value of the deal is $4.55 billion, as per
Reuters calculations
  
    ** Packaged food companies, including Campbell Soup  CPB.N 
have looked to revamp their portfolios through mergers and
acquisitions in a bid to appeal to customers amid sluggish sales
    ** TWNK's market capitalization is ~$3.73 bln, while SJM's
market value is ~$14 bln - LSEG data
    ** Up to last close, TWNK was up 25.3% YTD, while SJM was
down 10.7% YTD

 (Reporting by Juveria Tabassum in Bengaluru)
 ((Juveria.Tabassum@thomsonreuters.com;))