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Craft Ice Maker Lux Ice Appoints F&B Veteran Crouse as CEO

Craft ice manufacturer Lux Ice USA has appointed food and beverage industry veteran Michael Crouse as chief executive officer. Crouse joins Lux Ice with over 30 years of commercial and general management experience in both the retail and foodservice sectors in North America. His previous roles included president of US Foodservice at Kraft Heinz and VP/GM of US Supermarkets at the Frito Lay division of PepsiCo. Most recently, he was the head of US prepared foodservice at Tyson Foods.

“We are very excited to have a leader of Michael’s caliber join Lux Ice to lead us in the next chapter of our growth story,” said Shawn Kilcoyne, founder & chairman at Lux. “As we expand our premium craft ice business from retail into restaurants and across other foodservice channels, Michael is ideally suited to rapidly build our distribution and customer partnerships.”

Lux Ice managing partner Mark Rogers adds, “Michael embraces our core values and has quickly demonstrated a passion for our vision to elevate every beverage experience, and to be a company that positively impacts our community.”

“I am thrilled to join the team at Lux Ice USA,” said Crouse. “It’s incredible how far the company has come in such a short period of time, and I’m honored to work with such a talented and diverse group of team members that we have here at Lux.”

Lux Ice USA a leader in the fast-growing craft ice industry, was founded in 2020 by  Kilcoyne. Elevating beverage experiences with slow-melting, crystal clear ice spheres, Lux Ice USA is available at leading retailers, restaurants and other foodservice locations nationwide. Through its core values of trust, agility and ownership, Lux Ice strives to be the “coolest” place to work and engage in its communities to support long-term self-sustaining employment.

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J.M. Smucker to Acquire Hostess for $5.6B

Hostess Brands, Inc., has entered into a definitive agreement with The J.M. Smucker Co. to acquire all of the outstanding shares of Hostess Brands in a cash and stock transaction valued at $34.25 per Hostess Brands share, representing a transaction value of approximately $5.6 billion, including the assumption of debt.

Under the terms of the agreement, Hostess Brands shareholders will receive $30 in cash and 0.03002 shares of The J.M. Smucker Co. common stock (valued at $4.25 as of Sept. 8, 2023) for each share of Hostess Brands common stock. The purchase price represents a premium of approximately 54 percent to the closing price of $22.18 on Aug. 24, the last trading day prior to press reports of a potential transaction.

Andy Callahan, president and chief executive officer of Hostess Brands commented, “I am extremely proud of the entire Hostess Brands team for the legacy they created in building a premier snacking company and driving industry leading returns for our investors. Today represents another exciting chapter for our company as we combine our iconic snacking brands with The J.M. Smucker Co.’s family of beloved brands.

“We believe this is the right partnership to accelerate growth and create meaningful value for consumers, customers and shareholders. Our companies share highly complementary go-to market strategies, and we are very similar in our core business principles and operations. Above all else, Hostess Brands and The J.M. Smucker Co. share a deep commitment to inspiring moments of joy and satisfaction through our products, and we look forward to continuing to do so as part of The J.M. Smucker Co. family.”

“We are excited to announce the acquisition of Hostess Brands, which represents a compelling expansion of our family of brands and a unique opportunity to accelerate our focus on delighting consumers with convenient solutions across different meal and snacking occasions,” said Mark Smucker, chair of the board, president and chief executive officer of The J.M. Smucker Co. “With this acquisition, we are adding an iconic sweet snacking platform; enhancing our ability to deliver brands consumers love and convenient solutions they desire; and leveraging the attributes Hostess offers, including its strong convenience store distribution and leading innovation pipeline, combined with our strong commercial organization and consistent retail execution across channels to drive continued growth.

“Our organization is well positioned to deliver on the great potential our expanded family of brands offers, as has been reflected by our history of growth through acquisition and the successful integration of new categories to our business. We look forward to this exciting new chapter for The J.M. Smucker Co.”

Under the terms of the agreement, The J.M. Smucker Co., through its wholly owned subsidiary SSF Holdings, Inc., will commence an exchange offer to acquire all outstanding shares of Hostess Brands. Stockholders will receive $30 in cash and 0.03002 shares of The J.M. Smucker Co. common stock for each share of Hostess Brands common stock.

The closing of the exchange offer will be subject to certain conditions, including the tender of at least a majority of the outstanding shares of Hostess common stock and other customary closing conditions, including receipt of required regulatory approvals. Upon the successful completion of the exchange offer, The J.M. Smucker Co. will acquire all of the remaining shares of Hostess Brands common stock that were not acquired in the exchange offer through a second-step merger for the same consideration per share as paid in the exchange offer.

The cash portion of the transaction is expected to be funded through a combination of cash on hand, a bank term loan and long-term public bonds.

Both The J.M. Smucker Co. and Hostess Brands boards of directors have unanimously approved the transaction. The transaction is anticipated to close in the third quarter of The J.M. Smucker Co.’s current fiscal year ending April 30.

Morgan Stanley & Co. LLC and Morgan, Lewis & Bockius LLP are serving as financial and legal advisors, respectively, to Hostess Brands.

Hostess Brands, Inc. is a premier snacking company with a portfolio of iconic brands; Hostess Brands makes America’s No. 1 cupcake, mini donut and zero sugar cookie brands. With annual sales of $1.4 billion and approximately 3,000 dedicated team members, Hostess Brands produces new and classic snacks, including Hostess Donettes, Twinkies, CupCakes, Ding Dongs and Zingers, as well as a variety of Voortman cookies and wafers.

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