Question of the Day: How much did JM Smucker pay to acquire Hostess Brands?
How much dough was needed to make this sweet deal?
Answer: $5.6 billion
- The article mentions that Hostess had gone through bankruptcy twice before being acquired by JM Smucker. Why might JM Smucker have wanted to buy Hostess despite its history of problems?
- Review this list of JM Smucker’s other brands. How might this acquisition impact:
- The competitive landscape of the food industry?
- Pricing and availability of Hostess products?
- Quality of Hostess products?
- What are your feelings about Hostess continuing under JM Smucker? Are you a consumer of their products? If not, what alternatives do you buy instead?
Behind the numbers (NPR):
"The total price tag is a whopping $5.6 billion — a huge scoop for Hostess, which has gone through bankruptcy not once but twice in the past two decades. That included a few months when Twinkies disappeared from the shelves.
Smucker had to fight to snag Hostess, prevailing over several big rivals that reportedly included PepsiCo, Oreo maker Mondelez International and Cheerios maker General Mills."
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