Voortman Cookies to be acquired by Hostess Brands for $320m

Hostess Brands has signed an agreement to acquire cookies and wafers manufacturer Voortman Cookies from Swander Pace Capital for nearly $320m in cash.

This acquisition is part of the company’s long-term growth strategy, allowing Hostess Brands to enter the wafer and sugar-free cookie market. Hostess Brands will also be able to add better-for-you products to its existing portfolio of sweet baked goods to create a more diverse company.

Both companies will benefit from shared established infrastructure and strengthened retail partnerships in the US and Canada.

Hostess Brands president and CEO Andy Callahan said: “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 the meaningful runway for future growth.

“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 CEO Douglas MacFarlane said: “The team at Voortman is excited about becoming part of the Hostess portfolio and the prospects for the further dramatic growth of the Voortman brand behind the exceptional capabilities of the Hostess organisation.”

The deal is expected to be completed by January next year.