Hostess Brands Stock Rises on Report Smucker Close to Buying Twinkies Maker

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Shares of

Hostess Brands

the makers of Twinkies, jumped on Monday after it was reported that

J.M. Smucker
Co.
is about to buy it.

Smucker

(ticker: SJM), the food company famous for jams and jellies, beat out competition against

General Mills

(GIS), the maker of Cheerios, to buy out Hostess (TWNK) for about $4 billion, The Wall Street Journal reported.

Hostess climbed 15% in premarket trading Monday to $32.28. Smucker shares climbed 0.9% to $142.81.

A buyout would mark a dramatic recovery for Hostess, which has been through two Chapter 11 bankruptcies. The company returned to the stock market in 2016 after going private. Sales stopped $1.3 billion in 2022 and the stock price has more than doubled in the past five years.

Write to Brian Swint at brian.swint@barrons.com