This deal, which appears to be a smart move for Hostess, is unique from its last M&A foray with Superior Cake Products in 2016. That acquisition helped grow the company's premium products and in-store bakery channel. Conversely, picking up Big Texas and Cloverhill brands helps Hostess get into the breakfast space and manufacture more products in-house.
One strategy Hostess has employed in the past is to buy a brand, and then manufacture it in house. In this transaction, Hostess has the advantage of not only acquiring products, but also a bakery where they can be made. All around, it looks like a pretty sweet deal. 781b155fdc