Hostess Brands, Inc. (TWNK, TWNKW) has entered an agreement to acquire Voortman Cookies Limited, a manufacturer of premium, branded wafers as well as sugar-free and specialty cookies, from Swander Pace Capital for approximately $320 million.
Hostess projects the acquisition to provide approximately $20 million of incremental adjusted EBITDA in 2020, growing to $40 to $50 million by 2022. Mid-single digit earnings per share accretion is expected in 2020, excluding investments in integration, with double-digit accretion thereafter, upon full achievement of cost synergies.
Hostess Brands plans to finance the deal by using cash on balance sheet, along with secured financing commitments from Credit Suisse and Citi.
Read the source article at nasdaq.com
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