Hostess Brands, Inc. is acquiring Voortman, maker of branded wafers and specialty cookies, from Swander Pace Capital for approximately $320 million.

The transaction, which has been unanimously approved by the Hostess board of directors, is set to close in early January 2020, subject to customary closing conditions.

“Voortman is a leading brand with a well-defined consumer position that complements and extends the growing Hostess portfolio into the growing cookie and better-for-you sweet snacking categories with meaningful runway for future growth,” said Andy Callahan, Hostess president and ceo. “We believe the acquisition of Voortman will create significant value for all of our stakeholders. We expect the combination of Hostess’ lean, proven operating model and Voortman’s brand and adjacent category position, will result in meaningful cost savings and growth opportunities.”

Voortman is the No. 1 player in crème wafers and sugar free cookies, as reported by Nielsen for the 52-week period ended Nov. 2, 2019 and has achieved compound annual point of sale growth over the last three years of approximately 5 percent. 

Founded in 1951 by brothers William and Harry Voortman, the company is headquartered in Burlington, Ontario, Canada. Hostess said the acquisition will strengthen its position in the $8.4 billion cookie category and achieve at least $15 million in annual run-rate cost synergies within 12-18 months.

“The team at Voortman is excited about becoming part of the Hostess portfolio and the prospects for further dramatic growth of the Voortman brand behind the exceptional capabilities of the Hostess organization,” said Voortman CEO Douglas MacFarlane.