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J.M. Smucker to Acquire Hostess for $5.6B

Hostess Brands, Inc., has entered into a definitive agreement with The J.M. Smucker Co. to acquire all of the outstanding shares of Hostess Brands in a cash and stock transaction valued at $34.25 per Hostess Brands share, representing a transaction value of approximately $5.6 billion, including the assumption of debt.

Under the terms of the agreement, Hostess Brands shareholders will receive $30 in cash and 0.03002 shares of The J.M. Smucker Co. common stock (valued at $4.25 as of Sept. 8, 2023) for each share of Hostess Brands common stock. The purchase price represents a premium of approximately 54 percent to the closing price of $22.18 on Aug. 24, the last trading day prior to press reports of a potential transaction.

Andy Callahan, president and chief executive officer of Hostess Brands commented, “I am extremely proud of the entire Hostess Brands team for the legacy they created in building a premier snacking company and driving industry leading returns for our investors. Today represents another exciting chapter for our company as we combine our iconic snacking brands with The J.M. Smucker Co.’s family of beloved brands.

“We believe this is the right partnership to accelerate growth and create meaningful value for consumers, customers and shareholders. Our companies share highly complementary go-to market strategies, and we are very similar in our core business principles and operations. Above all else, Hostess Brands and The J.M. Smucker Co. share a deep commitment to inspiring moments of joy and satisfaction through our products, and we look forward to continuing to do so as part of The J.M. Smucker Co. family.”

“We are excited to announce the acquisition of Hostess Brands, which represents a compelling expansion of our family of brands and a unique opportunity to accelerate our focus on delighting consumers with convenient solutions across different meal and snacking occasions,” said Mark Smucker, chair of the board, president and chief executive officer of The J.M. Smucker Co. “With this acquisition, we are adding an iconic sweet snacking platform; enhancing our ability to deliver brands consumers love and convenient solutions they desire; and leveraging the attributes Hostess offers, including its strong convenience store distribution and leading innovation pipeline, combined with our strong commercial organization and consistent retail execution across channels to drive continued growth.

“Our organization is well positioned to deliver on the great potential our expanded family of brands offers, as has been reflected by our history of growth through acquisition and the successful integration of new categories to our business. We look forward to this exciting new chapter for The J.M. Smucker Co.”

Under the terms of the agreement, The J.M. Smucker Co., through its wholly owned subsidiary SSF Holdings, Inc., will commence an exchange offer to acquire all outstanding shares of Hostess Brands. Stockholders will receive $30 in cash and 0.03002 shares of The J.M. Smucker Co. common stock for each share of Hostess Brands common stock.

The closing of the exchange offer will be subject to certain conditions, including the tender of at least a majority of the outstanding shares of Hostess common stock and other customary closing conditions, including receipt of required regulatory approvals. Upon the successful completion of the exchange offer, The J.M. Smucker Co. will acquire all of the remaining shares of Hostess Brands common stock that were not acquired in the exchange offer through a second-step merger for the same consideration per share as paid in the exchange offer.

The cash portion of the transaction is expected to be funded through a combination of cash on hand, a bank term loan and long-term public bonds.

Both The J.M. Smucker Co. and Hostess Brands boards of directors have unanimously approved the transaction. The transaction is anticipated to close in the third quarter of The J.M. Smucker Co.’s current fiscal year ending April 30.

Morgan Stanley & Co. LLC and Morgan, Lewis & Bockius LLP are serving as financial and legal advisors, respectively, to Hostess Brands.

Hostess Brands, Inc. is a premier snacking company with a portfolio of iconic brands; Hostess Brands makes America’s No. 1 cupcake, mini donut and zero sugar cookie brands. With annual sales of $1.4 billion and approximately 3,000 dedicated team members, Hostess Brands produces new and classic snacks, including Hostess Donettes, Twinkies, CupCakes, Ding Dongs and Zingers, as well as a variety of Voortman cookies and wafers.

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Tractor Supply Launches Annual FFA Fundraiser

Tractor Supply Company, the largest rural lifestyle retailer in the United States, has launched its ninth annual National Future Farmers of America Organization T-shirt fundraiser. For a limited time, customers can purchase special-edition FFA T-shirts exclusively at Tractor Supply stores nationwide and online to support FFA and its ongoing commitment to the future of agriculture.

Campaign proceeds will be distributed to FFA chapters across the country, funding agricultural programs and activities for students and alumni in support of future leaders at the National FFA Convention & Expo, to be held in Indianapolis, Indiana, Nov. 1-4.

The T-shirt fundraiser has generated nearly $2.2 million in sales since the program’s inception in 2015, with 2022 marking the highest T-shirt sales to date at $412,812. Tractor Supply also proudly supports FFA and its mission through multiple annual fundraising events, such as Grants for Growing and many activities at the local level.

“We are immensely proud to announce our partnership with FFA in this year’s T-shirt campaign,” said Kimberley Gardiner, chief marketing officer of Tractor Supply. “Each shirt sold is a symbol of our long-standing commitment to empowering the future of agriculture. With every purchase, we are not only supporting FFA but also investing in the dreams and aspirations of future leaders in our community.”

The campaign will benefit four programs: the Living to Serve student community empowerment program; Alumni Legacy Grants, which provide $1,000 scholarships annually to students pursuing degrees in agricultural education’ New Farmers of America Archives aimed at promoting inclusivity and accommodating students of all races and backgrounds; and Gift of Blue, which provides funding for members who might not otherwise be able to afford their own jackets.

For more information on the fundraiser, visit TractorSupply.com/FFA and follow Tractor Supply on FacebookInstagram and Twitter.

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