Quick Take
Hostess Brands (TWNK) announced it has agreed to acquire Voortman Cookies for $320 million in cash.
Voortman Cookies operates as a branded wafers as well as sugar-free and specialty cookies manufacturer.
TWNK is paying up for Voortman’s higher growth rate and #1 market position as it seeks to diversify away from sugar-heavy sweets into ‘healthier-for-you’ products.
However, given TWNK’s pricey stock valuation at its current level, my bias is NEUTRAL.
Target Company
Burlington, Ontario-based Voortman was founded in 1951 to manufacture branded wafers as well as sugar-free and specialty cookies.
Management