Hostess set to announce bidder for Twinkies
NEW YORK — The indestructible Twinkie appears to be one step closer to a comeback.
Hostess Brands is close to announcing that it has picked two investment firms — C. Dean Metropoulos & Co. and Apollo Global Management — as the lead bidders for its Twinkies and other snack cakes, according to a source close to the situation who was not authorized to comment publicly on the talks.
The joint “stalking horse” bid would set the floor for an auction process that lets competitors make better offers. A judge would have to approve any final sale.
After years of management turmoil and turnover, Hostess declared it was going out of business and selling its brands in November. The company, based in Irving, Texas, has already announced separate lead bidders for its other brands. McKee Foods, which makes Little Debbie snack cakes, was picked as the lead bidder for Drake’s cakes, which include Devil Dogs, Funny Bones and Yodels.
Flowers Foods, which makes Tastykakes and a variety of breads, was picked as the lead bidder for six of Hostess’ major bread brands, including Wonder.
United States Bakery Inc. was picked as the lead bidder for a number of smaller bread brands.
Citing sources close to the situation it did not name, the Wall Street Journal reported Tuesday that the offer for Twinkies and other snack cakes by C. Dean Metropoulos and Apollo would be for more than $400 million. The report said that the deal could be disclosed as early as Tuesday. C. Dean Metropoulos owns Pabst Brewing Co.
A representative for Apollo declined to comment. A representative for C. Dean Metropoulos did not return calls for comment.
Hostess has stressed in bankruptcy proceedings that it needs to move quickly in the sale of its brands to capitalize on the outpouring of nostalgia and media coverage prompted by its demise. The longer the cakes and breads are off shelves, the more people will become accustomed to eating cakes and breads by rivals, the company has said.
Rules for posting comments
Comments posted below are from readers. In no way do they represent the view of Oahu Publishing Inc. or this newspaper. This is a public forum.
Comments may be monitored for inappropriate content but the newspaper is under no obligation to do so. Comment posters are solely responsible under the Communications Decency Act for comments posted on this Web site. Oahu Publishing Inc. is not liable for messages from third parties.
IP and email addresses of persons who post are not treated as confidential records and will be disclosed in response to valid legal process.
Do not post:
- Potentially libelous statements or damaging innuendo.
- Obscene, explicit, or racist language.
- Copyrighted materials of any sort without the express permission of the copyright holder.
- Personal attacks, insults or threats.
- The use of another person's real name to disguise your identity.
- Comments unrelated to the story.
If you believe that a commenter has not followed these guidelines, please click the FLAG icon below the comment.