KANSAS CITY, Mo. —Hostess Brands Inc. will acquire wafer and specialty cookie manufacturer Voortman Cookies Ltd., the companies have announced.
Packaged baked goods company Hostess will pay private equity firm Swander Pace Capital $320 million in cash for Voortman Cookies. The transaction is subject to customary closing conditions, and the companies expect it to close in early January.
“Voortman is a leading brand with a well-defined consumer position that complements and extends the growing Hostess portfolio into the growing cookie and better-for-you sweet snacking categories with meaningful runway for future growth,” said Andy Callahan, Hostess’ president and CEO.
The acquisition will result in meaningful cost savings and growth opportunities, Callahan said, and it fits into Hostess’s long-term growth strategy.
By adding Voortman, Hostess expects to compete with its products in the growing $8.4 billion cookie category and have greater growth opportunities due to a more diverse portfolio of brands and products, according to the company. It also expects the acquisition will achieve at least $15 million in annual run-rate cost synergies within the first year and a half.
“The team at Voortman is excited about becoming part of the Hostess portfolio and the prospects for further dramatic growth of the Voortman brand behind the exceptional capabilities of the Hostess organization,” said Douglas MacFarlane, CEO of Voortman.
Voortman, Burlington, Ontario, was founded in 1951. The company is known for its creme wafers—with flavors including Apple Crisp Wafers and Chocolate and Caramel Wafers—and its sugar-free cookies.
Kansas City, Mo.-based Hostess is a packaged-food company focused on manufacturing and selling fresh baked sweet goods in the United States. The brand dates to 1919, and its products include Twinkies, Donettes, Zingers, Honey Buns and Coffee Cakes.