J.M. Smucker Bets Bigger on Snacks in $5.6 Billion Twinkies Deal

J.M. Smucker Co. agreed to acquire Twinkies maker Hostess Brands Inc. for about $5.6 billion, furthering a growing consolidation trend among the companies that stock the shelf-stable aisles at the heart of supermarkets.

Investors will get $34.25 in cash and stock for each Hostess Brands share, according to a statement on Monday. The price, which includes $900 million in debt, represents a 22% premium to Hostess’ closing price on Sept. 8.

While consumers rushed back to the center of grocery stores during the pandemic, and revenue from packaged food had stayed elevated thanks to higher prices, consumers are now returning ...