M&A · Industrials · Bakery Products
J M SMUCKER Co to acquire Hostess Brands, Inc.
Announced Sep 11, 2023 · Closed Nov 7, 2023
Deal value$5.60BEV $5.45B
Premium54.0%To unaffected price
EV / Adj. EBITDA17.6x3.9x EV / Revenue
ConsiderationCash and stock$34.25 per share
Transaction
- Acquirer
- J M SMUCKER Co (SJM)
- Target
- Hostess Brands, Inc. (TWNK)
- Buyer type
- Strategic
- Offer price per share
- $34.25
- Enterprise value
- $5.45B
- Status
- Closed Nov 7, 2023
Deal protections
- Break fee (target pays)
- $175M · 3.1%
- Reverse fee (buyer pays)
- —
- Go-shop
- No-shop
- Financing
- Committed · Morgan Stanley, BofA Securities, RBC Capital Markets
Advisors
- To the acquirer
- RBC Capital Markets, BofA Securities
- To the target
- Morgan Stanley
- Morgan Stanley fee
- $61.0M
Sector context · Industrials
- Comparable deals
- 71 in the prior 24 months
- Premium
- 54.0% vs. 47.0% sector median
- EV / Adj. EBITDA
- 17.6x vs. 10.9x sector median
- Break fee
- 3.1% vs. 2.8% sector median
Timeline
- AnnouncedSep 11, 2023
- Tender offerOct 10, 2023
- ClosedNov 7, 2023
Valuation · fairness opinions
Trading comparables$22.20$31.75
Trading comparables$22.00$31.50
Trading comparables$22.00$31.05
Trading comparables$21.85$30.80
Precedent transactions$29.75$38.80
Offer $34.25
Implied value per Hostess Brands, Inc. share by analysis, from Morgan Stanley · DCF discount rate 7.6%–8.9%.