J.M. Smucker has announced on Monday that it will be buying the owner of Twinkies, Hostess, for $4.6 billion.

The deal will have Smucker spending $34.25 per share in addition to $900 million in debt bringing the total valuation to roughly $5.5 billion.

The announcement of the deal had a significant impact on Hostess share prices as the company closed Friday at $28.11 but rose by 18.8% in early trading this morning. The acquisition was not without competition as Smucker was able to beat out General Mills, the creator of Cheerios, for the acquisition.

The acquisition is looking to be extremely beneficial for Hostess as the company has had a bumpy couple of decades. The company went through two Chapter 11 bankruptcies resulting in Hostess products being removed from shelves for an 8-month period. It wasn’t until November of 2016 that the company returned to the public market.

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Source: Bloomberg