Hostess Brands

Last updated

Hostess Brands Inc.
Company type Subsidiary
Nasdaq: TWNK (Class A)
IndustryFood (bakery)
Predecessor Old HB
FoundedJune 2013;10 years ago (2013-06)
Headquarters Lenexa, Johnson County Kansas, United States
Key people
Jerry D. Kaminski (Chairman of the Board)
Andy Callahan (CEO)
ProductsBrands such as Hostess, Voortman, Dolly Madison, Donettes, Twinkies, CupCakes, Ding Dongs, HoHos, Zingers, Snoballs
RevenueIncrease2.svg US$1.358 billion (2022)
Increase2.svgUS$220 million (2022)
Increase2.svgUS$164 million (2022)
Total assets Increase2.svgUS$3.492 billion (2022)
Total equity Increase2.svgUS$1.797 billion (2022)
Number of employees
2,000 [1]
Parent The J.M. Smucker Company (2023–present)
Website hostessbrands.com

Hostess Brands is an American-based bakery company formed in 2013. Its main operating subsidiaries are Hostess Brands, LLC, and Voortman Cookies Limited.

Contents

The company owns several bakeries in the United States that produce snack cakes under the Hostess and Dolly Madison brand names and its Canadian subsidiary, Voortman Cookies Ltd., produces wafers and cookies under the Voortman brand name. It is headquartered in Lenexa within Johnson County, Kansas.

The J.M. Smucker Company agreed to acquire Hostess Brands for $5.6 billion in a cash and stock deal on September 11, 2023. The purchase was completed in November. [2]

History

The Hostess Brands company formed in June 2013, having started as a venture by Apollo Global Management and C. Dean Metropoulos and Company, [3] to acquire assets from Old HB, the company formerly known as Interstate Bakeries and Hostess Brands Inc. Apollo and Metropoulos purchased certain cake business assets of Old HB – which had filed for Chapter 11 bankruptcy and bankruptcy liquidation – through the bankruptcy court, ultimately assuming the name, branding and much of the product line of the former Hostess Brands.

These assets included four bakeries, located in Columbus, Georgia; Emporia, Kansas; Indianapolis, Indiana; and Schiller Park, Illinois. The Schiller Park facility later closed in October 2014. [4] [5]

In July 2016, Hostess announced it would be going public in an offering valuing the company at $2.3 billion. [6] The deal would see Apollo Global Management and C. Dean Metropoulos and Company become minority owners, with The Gores Group taking a majority ownership position in the firm. [7]

Instead of making an initial public offering, Gores acquired Hostess via a spin-off, under a special-purpose acquisition company process. Gores Holdings subsequently renamed itself Hostess Brands, Inc., changing its ticker symbol from GRSH to TWNK, after the Twinkie brand snack cake. [8] [9]

In April 2018, the company announced that Andy Callahan would take over as CEO in May 2018. [10]

The J.M. Smucker Company agreed to acquire Hostess Brands for $5.6 billion in a cash and stock deal on September 11, 2023. [11] The acquisition was completed on November 7, 2023. [12]

Mergers and acquisitions

On June 14, 2016, Hostess acquired Superior Cake Products, making it the company's first acquisition since the Hostess brand returned in 2013. [13]

On February 1, 2018, Hostess acquired the Big Texas and the Cloverhill Bakery brands from Aryzta. [14]

On August 1, 2019, Hostess announced that it was selling Superior Cake Products to Sara Lee Frozen Bakery for $65 million. [15]

On December 2, 2019, Hostess announced that it was purchasing Voortman Cookies Limited, a Canadian company, from Swander Pace Capital for approximately US$320 million (C$425 million). The transaction closed in January 2020. [16]

Products

See also

Related Research Articles

<span class="mw-page-title-main">Dolly Madison</span> Snack food brand

Dolly Madison is an American bakery brand owned by Hostess Brands, selling packaged baked snack foods. It is best known for its long marketing association with the Peanuts animated TV specials.

<span class="mw-page-title-main">Twinkie</span> American snack cake

A Twinkie is an American snack cake, described as "golden sponge cake with a creamy filling". It was formerly made and distributed by Hostess Brands. The brand is currently owned by Hostess Brands, Inc., itself currently owned by The J.M. Smucker Company and having been formerly owned by private equity firms Apollo Global Management and C. Dean Metropoulos and Company as the second incarnation of Hostess Brands. During bankruptcy proceedings, Twinkie production was suspended on November 15, 2012, and resumed after an absence of a few months from American store shelves, becoming available again nationwide on July 15, 2013.

<span class="mw-page-title-main">Interstate Bakeries</span> Bakeries of the United States

Old HB, Inc., known as Hostess Brands from 2009 to 2013 and established in 1930 as Interstate Bakeries Corporation, was a wholesale baker and distributor of bakery products in the United States. Before its 2012 closure and liquidation, it owned the Hostess, Wonder Bread, Nature's Pride, Dolly Madison, Butternut Breads, and Drake's brands.

<span class="mw-page-title-main">The J.M. Smucker Company</span> American food and beverage manufacturer

The J.M. Smucker Company, also known as Smuckers, is an American manufacturer of food and beverage products. Headquartered in Orrville, Ohio, the company was founded in 1897 as a maker of apple butter. J.M. Smucker currently has three major business units: consumer foods, pet foods, and coffee. Its flagship brand, Smucker's, produces fruit preserves, peanut butter, syrups, frozen crustless sandwiches, and ice cream toppings.

Voortman Cookies Limited is a Canadian company specializing in the production and sale of cookies. Based in Burlington, Ontario, Voortman brand cookies are sold at retail locations across Canada, the United States, Puerto Rico, and over 70 other countries worldwide.

<span class="mw-page-title-main">McKee Foods</span> Snack food and granola manufacturer

McKee Foods Corporation is a privately held and family-owned American snack food and granola manufacturer headquartered in Collegedale, Tennessee. The corporation is the maker of Drake's Cakes, Fieldstone Bakery snacks and cereal, Little Debbie snacks, and Sunbelt Bakery granola and cereal. The company also formerly operated Heartland Brands.

<span class="mw-page-title-main">Ding Dong</span> Small chocolate cake of hockey puck size

A Ding Dong is a chocolate cake produced and distributed in the United States by Hostess Brands and in Canada from Vachon Inc. under the name King Dons; in some U.S. markets, it was previously known as Big Wheels. With the exception of a brief period in 2013, the Ding Dong has been produced continuously since 1967. It is round with a flat top and bottom, close to three inches in diameter and slightly taller than an inch, similar in shape and size to a hockey puck. A white creamy filling is injected into the center and a thin coating of chocolate glaze covers the cake. The Ding Dong was originally wrapped in a square of thin aluminum foil, enabling it to be carried in lunches without melting the chocolate glaze.

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Cloverhill Bakery was a producer of baked goods primarily sold through vending machines and retail throughout North America. It also produced buns used by McDonald's. Cloverhill was founded in Chicago, Illinois, in 1961 as a small family owned vending company that hand-packed pastries. In 1977 the bakery expanded their facilities and implemented an automated Danish baking system. In 2011 Cloverhill opened an additional facility in Cicero, Illinois. Cloverhill was acquired by Aryzta in 2014. In 2017, an ICE immigration raid on its Chicago facility resulted in the removal 800 workers who were found to be hired and employed without legal documentation. On February 1, 2018, Aryzta announced that it had sold the Big Texas and Cloverhill brands to Hostess Brands.

<span class="mw-page-title-main">Chocodile Twinkie</span> Confection created by the Hostess Brands company

Chocodile Twinkies are a confection created by the Hostess Brands company. The confection was known only as Chocodiles prior to 2014. The package describes the snack cake as a "chocolate coated sponge cake with creamy filling." The Chocodile is Twinkie-shaped and sold in packages of two.

<span class="mw-page-title-main">Twinkie the Kid</span> Mascot for Twinkies cakes

Twinkie the Kid is the mascot for Twinkies, Hostess's golden cream-filled snack cakes. He is a registered trademark of Hostess Brands. He made his debut in 1971. He has appeared on product packaging, in commercials and as related collectible merchandise, except for a brief period between 1988 and 1990.

<span class="mw-page-title-main">Sno Balls</span> Cream-filled chocolate cakes covered with marshmallow frosting and colored coconut flakes

Sno Balls are cream-filled chocolate cakes covered with marshmallow frosting and coconut flakes formerly produced and distributed by Hostess and currently owned by private equity firms Apollo Global Management and Metropoulos & Co. Sno Balls are usually pink; however, they are also available in chocolate, lemon, white, green, blue and other colors for specific holidays and times of year. They come in packages of two and are sold at many convenience and grocery stores in the United States.

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<span class="mw-page-title-main">Ralcorp</span> Manufacturer of various food products

Ralcorp Holdings is a manufacturer of various food products, including breakfast cereal, cookies, crackers, chocolate, snack foods, mayonnaise, pasta, and peanut butter. The company is based in St. Louis, Missouri. The majority of the items Ralcorp makes are private-label, store-brand products. It has over 9,000 employees. Ralcorp has its headquarters in the Bank of America Plaza in downtown St. Louis.

<span class="mw-page-title-main">Bimbo Bakeries USA</span> American subsidiary bakery company of Grupo Bimbo

Bimbo Bakeries USA, Inc. is the American corporate arm of the Mexican multinational bakery product manufacturing company Grupo Bimbo. It is the largest bakery company in the United States. The company, headquartered in Horsham, Pennsylvania, a suburb of Philadelphia, owns many fresh bread and sweet baked goods brands in the United States, including Entenmann's, Sara Lee, and Thomas'. It is also a top advertising sponsor for many major soccer teams around the globe.

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<span class="mw-page-title-main">Hostess CupCake</span> American snack cake brand

Hostess CupCake is an American brand of snack cake produced and distributed by Hostess Brands and currently owned by private equity firms Apollo Global Management and C. Dean Metropoulos & Company. Its most common form is a chocolate cupcake with chocolate icing and vanilla creme filling, with seven distinctive white squiggles across the top. However, other flavors have been available at times. It has been claimed to be the first commercially produced cupcake and has become an iconic American brand.

<span class="mw-page-title-main">Hostess (snack cakes)</span> Brand of snack cakes made by Hostess brands

Hostess Cake, mostly known simply as Hostess, is a brand under which snack cakes are sold by Hostess Brands. The brand originated in 1919 when the first Hostess CupCake was sold. However, it is better-known as the brand under which Twinkies are sold, after that product appeared in 1930.

References

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