Hostess Brands to JM Smucker

Packaged Foods/Sep 2023/Morgan Stanley

Deal Information

Target

Hostess Brands

Acquiror

JM Smucker

Sector

Packaged Foods

Target Type

Public

Acquiror Type

Strategic

Advisors

Morgan Stanley

Enterprise Value

$5.5B

EV / LTM Sales

EV / LTM EBITDA

17.9x

EV / Fwd EBITDA

17.0x

Comparable transactions cited by the advisor, excluding the subject transaction.

AV / LTM Adj. EBITDA selected range: 16.0x - 20.0x

8 comps


Jul 2014	The Hillshire Brands Company	Tyson Foods Inc.	-	-	16.1x	-
Feb 2015	Big Heart Pet Brands	The J.M. Smucker Company	-	-	14.6x	-
Nov 2015	Boulder Brands, Inc.	Pinnacle Foods Inc.	-	-	14.7x	-
Dec 2017	Snyder's-Lance, Inc.	Campbell Soup Company	-	-	19.9x	-
Dec 2017	Amplify Snack Brands, Inc.	The Hershey Company	-	-	18.8x	-
Jul 2017	RB Foods	McCormick & Company Inc.	-	-	19.6x	-
Nov 2021	Dots Pretzels	The Hershey Company	-	-	15.1x	-
Aug 2023	Sovos Brands, Inc.	Campbell Soup Company	-	-	19.8x	-
	Mean			-	17.3x	-
	Median			-	17.5x	-

Discount rate and terminal value assumptions the advisor selected for its discounted cash flow analysis.

WACC: 7.6% – 8.9%
Terminal method: Exit multiple
Terminal assumption: 12.0x – 15.0x (NTM Adjusted EBITDA as of December 31, 2028)
Forecast basis: Hostess Brands Management Forecasted Financial Information
Forecast period: six months ending December 31, 2023 and calendar years 2024 through 2028

Advisor	WACC	Terminal method	Terminal assumption	Forecast basis	Forecast period	Filing
Morgan Stanley	7.6% – 8.9%	Exit multiple	12.0x – 15.0x (NTM Adjusted EBITDA as of December 31, 2028)	Hostess Brands Management Forecasted Financial Information	six months ending December 31, 2023 and calendar years 2024 through 2028	Open