The US baked-goods supplier, based in Missouri, US, said the deal provides "attractive", adjacent categories with "better-for-you product characteristics".
Hostess claims the $320m transaction is expected to generate at least $15m of annual run-rate synergies and double digit EPS accretion by 2021.
It expects the transaction to deliver on key growth opportunities while achieving at least $15m in annual run-rate cost synergies within 12–18 months.
Voortman, based in Burlington, Ontario, is a manufacturer of branded wafers, sugar-free and speciality cookies.
It 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%, according to data provided by Hostess Brands.
It sold a majority stake in its business to North American private-equity firm Swander Pace Capital for an undisclosed sum in 2015.
"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, president/CEO, Hostess.
"The acquisition 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.
"This acquisition fits well into our long-term growth strategy and we are confident Voortman will be a great addition to our existing sweet baked goods snacking and breakfast portfolio."
Douglas MacFarlane, CEO, Voortman, said it is excited to join the Hostess portfolio and the prospects for further growth of its brand.
The announcement comes just after Hostess Brands, Inc. announced significant changes to its executive leadership team beginning with the new year.
The company's executive VP and CFO Tom Peterson will transition to a newly created role of executive vice president of strategy and mergers and acquisitions at Hostess Brands. In addition, Brian Purcell, a consumer packaged goods industry veteran, will also join the company as an executive VP and CFO.
Both roles will be effective as of January 6, the company said.
Voortman was founded in 1951 by brothers William and Harry Voortman, whose father had operated a bakery in the Netherlands. In 2004, it became the first North American food brand to announce the removal of trans fats from its retail food products.
While some people are excited about the announcement, others took to Twitter to share their concerns;