Shares of Hostess Brands Inc. TWNK shot up 16.7% into record territory after the donuts and snacks company confirmed an agreement to be acquired by J.M Smucker Co. SJM in a cash and stock deal valued at $5.6 billion. J.M. Smucker shares tumbled 11.0% ahead of the open. Under terms of the deal, Hostess shareholders will receive $30.00 in cash and 0.03002 J.M. Smucker shares for each Hostess share they own, which values Hostess shares at $34.25 each. That represents a 21.8% premium to Friday’s closing price of $28.11. The deal is expected to close in the third quarter of J.M. Smucker’s fiscal year, which ends April 30, 2024. The Wall Street Journal had reported over the weekend that a deal was near. “We believe this is the right partnership to accelerate growth and create meaningful value for consumers, customers and shareholders,” said Hostess Chief Executive Andy Callahan. Hostess shares had rallied 25.3% year to date through Friday and J.M. Smucker’s stock had dropped 10.7%, while the S&P 500 SPX has gained 16.1%.

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