Shares of Hostess Brands (TWNK) skyrocketed after J.M. Smucker (SJM) agreed to buy the maker of 🎀Twinkies, Ding-Dongs and other treats for $5.6 billion, including $900 million in debt.

The maker of its namesake jellies, Folgers coffee and other food products said it would be paying $34.25 per share in cash and stock for Hostess, a 21.8% premium to Friday’s closing price, in a move to expand its snack offerings.

Along with its signature snack cake brands, Smucker will add Hostess's manufacturing plants in five states and Ontario, Canada, as well as a distribution facility in Kansas. Hostess’s approximately 3,000 employees will also join Smucker.

CEO Mark Smucker explained that the acquisition provides “a compelling expansion of our family of brands and a ꦺunique opportunity to accelerate our focu꧑s on delighting consumers with convenient solutions across different meal and snacking occasions.”

The company indicated it expects tꦫhe purchase will add about $1.5 billion in net sales with a mid-single-digit percentage annual growth rate, and that earnings per share (EPS) will be accretive in the first fiscal year. 

The transaction is expected to be ꦚcompleted in the third quarter of Smucker’s fiscal year which ends April 30, 2024.

Hostess Brands shares soared to an all-time high. Shares of J.M. Smucker tumbled to their lowest level in 14 months.