Smucker takes big fat chance on anti-obesity drugs

Hostess Brands

11/09/2023 17:51

(The author is a Reuters Breakingviews columnist. The opinions
expressed are her own.)
    By Lauren Silva Laughlin
       NEW YORK, Sept 11 (Reuters Breakingviews) - The peanut
butter and jelly company is paying an unhealthy $5.6 bln to buy
Twinkies maker Hostess. Boss Mark Smucker makes no bones about
doubling down on sweet snacks. As Ozempic and other treatments
threaten demand, it’s a strategy that would work if it weren’t
so expensive. 
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    CONTEXT NEWS
J.M. Smucker said on Sept. 11 it would buy Twinkies maker
Hostess Brands for $5.6 billion, including debt. The company
agreed to pay $34.25 a share in cash and stock, representing a
54% premium to the closing price on Aug. 24, the day before
Reuters reported Hostess was exploring a sale. 

 (Editing by Jeffrey Goldfarb and Sharon Lam)
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