The American bakery company unveiled today that is going to buy the Voortman Cookies, a Canadian company specialized in the production and sales of Cookies, for $320 million in cash. Hostess Brands expects that the strategic deal will double-digit the EPS by 2021 and generate at least $15 million of annual run-rate synergies; also, the company hopes that merger will represent an approximately $20 million of incremental adjusted EBITDA in 2020, growing to $40 to $50 million by 2022. Upon this, the fact the Hostess board unanimously approved the merger implies that the process should occur in a smooth way and could represent a new horizon for the company despite the short-term cost. Thank you for reading and leave your comments if you like.
To have access to our exclusive contents, join the Traders Heaven today! Link Below.
Disclaimer: All content of Golden Dragon has only educational and informational purposes, and never should be used or take it as financial advice.