J.M. Smucker nears deal to buy Twinkies-owner Hostess Brands – WSJ

Sept 10 (Reuters) – Jif Peanut butter maker J.M. Smucker (SJM.N) is nearing an agreement to buy Twinkies-owner Hostess Brands (TWNK.O) in a deal that would likely be in the neighborhood of $4 billion, the Wall Street Journal reported on Sunday, citing sources.

Hostess’ shares have risen nearly 27% since Reuters reported that the company was exploring a sale after fielding takeover interest from major food makers.

The company has a market capitalization of about $3.73 billion, according to LSEG Eikon data.

Hostess became an acquisition target after it raised prices on some of its products to boost revenue, fueling investor concerns over its prospects.

Both Hostess and J.M. Smucker did not immediately respond to Reuters’ request for comments outside regular business hours.

Reporting by Dimpal Gulwani in Bengaluru; Editing by Rashmi Aich

Our Standards: The Thomson Reuters Trust Principles.

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source: reuters.com