Hostess Close to Deal for Twinkies
courtesy of Hostess Brands Inc.A deal worth more than $400 million may be on the table as soon as tomorrow for Hostess Twinkies and other of the bankrupt Hostess Brands Inc.’s popular snack food brands. A report in The Wall…
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A deal worth more than $400 million may be on the table as soon as tomorrow for Hostess Twinkies and other of the bankrupt Hostess Brands Inc.’s popular snack food brands. A report in The Wall Street Journal cited “people familiar with the discussions” who say that Apollo Global Management LLC (NYSE: APO) and investment firm C. Dean Metropoulos & Co. are preparing a stalking-horse bid for the brands and several Hostess factories.
If the deal materializes it will be the fourth offer for a piece of the Hostess pie. Flowers Foods Inc. (NYSE: FLO) has offered up to $360 million for five major Hostess brands, including Wonder Bread and Nature’s Pride. United States Bakery Inc., makers of Franz bread, has offered $28.85 million for the Hostess bread brands including Sweetheart, and McKee Food Corp., maker of the Little Debbie snack foods, has bid $27.5 million for Hostess’ Drake brands, which include Devil Dogs and Ring Dings.
At the time the bankruptcy was filed, Hostess claimed assets of between $500 million to $1 billion and liabilities of more than $1 billion. Two pension funds are owed about $950 million.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
