Hostess Buys Cookie Manufacturer Voortman for $320MHostess Buys Cookie Manufacturer Voortman for $320M

December 2, 2019

4 Min Read
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Packaged food firm Hostess Brands said Monday that it has entered into an agreement to purchase cookies and wafers manufacturer Voortman from Swander Pace Capital for $320 million in cash.

“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,” Andy Callahan, president and chief executive officer of Hostess, said in a company press release. “We believe that the acquisition of Voortman will create significant value for our stakeholders. We expect the combination of Hostess’ lean, proven operating model and Voortman’s brand and adjacent category position, will result in meaningful cost savings and growth opportunities.”

Voortman was ranked as top producer of cream wafers and sugar free cookies in Nielsen monitoring of a 52-week period that ended on Nov. 2, 2019. Over the last three years, the cookie manufacturer generated compound annual point of sale growth of 5%. Founded in 1951, the firm is currently based in Burlington, ON and distributes its products in the US and Canada. 

“The team at Voortman is excited about becoming part of the Hostess portfolio and the prospects for further dynamic growth of the Voortman brand behind the exceptional capabilities of the Hostess organization,” said Douglas MacFarlane, Voortman’s chief executive officer, in a statement. 

Hostess’ board has unanimously approved the deal. The company said the sale will likely close in early January. 

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