Hostess to acquire Voortman for $320M
Hostess Brands and Voortman Cookies Limited announced that they have executed an agreement under which Hostess will acquire Voortman branded wafers as well as sugar-free and specialty cookies, from Swander Pace Capital for approximately $320 million (C$425 million) in cash, including a customary working capital adjustment, representing a post-synergy 9.1×1 EBITDA transaction multiple. The transaction has been unanimously approved by the Hostess board of directors. Hostess expects to close the transaction in early January 2020, subject to customary closing conditions.
Voortman is the No. 1 player in crème wafers and sugar-free cookies, as reported by Nielsen for the 52-week period ended Nov. 2, 2019 and has achieved a compound annual point of sale growth over the last three years of approximately 5 per cent. Founded in 1951 by brothers William and Harry Voortman and headquartered in Burlington, Ont., Voortman is a manufacturer of premium, branded wafers as well as sugar-free and specialty cookies with distribution mainly in the United States and Canada.