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MarketScreener Homepage  >  Equities  >  Nasdaq  >  Hostess Brands, Inc.    TWNK

HOSTESS BRANDS, INC.

(TWNK)
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Hostess Brands Buying Wafer Maker for $320 Million -- Update

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12/02/2019 | 05:19pm EST

By Micah Maidenberg

The maker of Twinkies wants to expand its portfolio with a new bet on wafers, cookies and sugar-free treats.

Hostess Brands Inc. on Monday said it struck a deal to buy Voortman Cookies Ltd. for about $320 million in cash from Swander Pace Capital, a private-equity firm that acquired a majority stake in the baker in 2015.

Founded in 1951, Voortman makes cookies but is known for being the leader among companies that produce creme-filled wafers and sugar-free cookies, according to Hostess. Voortman's wafers come in a range of flavors, from lemon to chocolate hazelnut to pumpkin spice, and are made with and without sugar.

American consumers have expressed concerns about sugar amid changing dietary preferences, with 38% saying in a Pew Research Center survey last year that they had limited their intake of the ingredient.

Still, Mondelez International Inc. has seen gains due in part to its Oreo cookies. Hershey Co. said in October that North American retail-level sales were up in a 12-week period compared with the year earlier.

Ontario, Canada-based Voortman's products will help diversify Hostess's lineup of products, which include classic sweet-baked goods like Twinkies, Ding Dongs and Zingers, company executives said. Its offerings have grown about 5% over the past three years on a compound basis, more than double the 1.8% growth rate for the broader cookie category, according to Hostess.

"They are by far the leader in sugar-free cookies and they are by far the leader within the wafer platform. So they have a very nice niche," Hostess Chief Executive Andrew Callahan said on a conference call.

Hostess expects the deal to be completed in early January and is targeting $15 million in annualized cost savings in procurement, operations and other tasks.

It also expects the acquisition to boost adjusted earnings before interest, taxes, depreciation and amortization by at least $40 million by 2022.

Colin Kellaher contributed to this article.

Write to Micah Maidenberg at micah.maidenberg@wsj.com

Stocks mentioned in the article
ChangeLast1st jan.
HOSTESS BRANDS, INC. 0.71% 14.19 Delayed Quote.29.71%
LONDON COFFEE -1.07% 1765 End-of-day quote.0.00%
LONDON SUGAR 1.06% 351.7 End-of-day quote.5.30%
MONDELEZ INTERNATIONAL 0.61% 54.17 Delayed Quote.35.32%
NEW YORK COCOA -0.23% 2646 End-of-day quote.9.38%
THE HERSHEY COMPANY 0.19% 149.54 Delayed Quote.39.25%
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Latest news on HOSTESS BRANDS, INC.
12/03Hostess Adds Cookie Maker to Its Lineup -- WSJ
DJ
12/02Hostess Brands Buying Wafer Maker for $320 Million -- Update
DJ
12/02HOSTESS BRANDS, INC. : Entry into a Material Definitive Agreement, Regulation FD..
AQ
12/02HOSTESS BRANDS, INC. : Enters into Agreement to Acquire Voortman, a Leading Nort..
BU
11/26HOSTESS BRANDS, INC. : Change in Directors or Principal Officers, Other Events, ..
AQ
11/26HOSTESS BRANDS, INC. : Strengthens Executive Leadership Team to Further Support ..
BU
11/06HOSTESS BRANDS : Management's Discussion and Analysis of Financial Condition and..
AQ
11/06HOSTESS BRANDS, INC. : Results of Operations and Financial Condition, Regulation..
AQ
11/06HOSTESS BRANDS, INC. : Announces Third Quarter 2019 Financial Results
BU
10/23HOSTESS BRANDS, INC. : to Report Third Quarter 2019 Financial Results on Novembe..
BU
More news
Financials (USD)
Sales 2019 908 M
EBIT 2019 148 M
Net income 2019 60,5 M
Debt 2019 680 M
Yield 2019 -
P/E ratio 2019 25,1x
P/E ratio 2020 20,1x
EV / Sales2019 2,64x
EV / Sales2020 2,50x
Capitalization 1 716 M
Chart HOSTESS BRANDS, INC.
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Hostess Brands, Inc. Technical Analysis Chart | MarketScreener
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Technical analysis trends HOSTESS BRANDS, INC.
Short TermMid-TermLong Term
TrendsBullishNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 9
Average target price 16,20  $
Last Close Price 14,19  $
Spread / Highest target 26,8%
Spread / Average Target 14,2%
Spread / Lowest Target -1,34%
EPS Revisions
Managers
NameTitle
Andrew P. Callahan President, Chief Executive Officer & Director
Dean Metropoulos Non-Executive Chairman
Andrew W. Jacobs Chief Operating Officer & Executive Vice President
Thomas Peterson Chief Financial Officer & Executive Vice President
Darryl P. Riley Senior Vice President-Quality, Food Safety, R&D
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