J.M. Smucker is buying Twinkies owner Hostess Brands for around $4.6 billion, bringing together two big names in snacks, the Wall Street Journal reported. Smucker said yesterday that it will acquire Hostess for $34.25 a share in cash and stock. The deal also includes about $900 million in debt, which Smucker said brings the total value to $5.6 billion. Shares of Hostess, which closed on Friday at $28.11, rose 18.8% in morning trading, while shares of Smucker fell 7.3%. The deal is expected to close in the third quarter of Smucker’s current fiscal year, which ends on April 30. Smucker prevailed in a heated competition with General Mills, parent of Cheerios and Betty Crocker. The sale caps a remarkable turnaround for Hostess, which has been through two chapter 11 bankruptcies. Two investment firms bought the company out of liquidation a decade ago, returning Twinkies to store shelves after an eight-month absence.
