Hostess Brands Rallies On Agreement To Be Acquired
Shares of Hostess Brands, Inc. (TWNK) are rising more than 18% Monday morning after the packaged foods company announced its decision to be acquired by The J.M. Smucker Co. (SJM) for about $5.6 billion or $34.25 per share, including the assumption of debt.
The purchase price represents a premium of approximately 54% to the closing price of $22.18 on August 24, the last trading day prior to reports of a potential transaction.
As per the deal, Hostess Brands shareholders will receive $30.00 in cash and 0.03002 shares of J.M. Smucker for each share of Hostess Brands they own.
TWNK is at $33.42 currently. It has traded in the range of $21.59 – $33.54 in the last 1 year.
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