Hostess nears deal to sell Twinkies brand
New York, NY, United States (4E) – Hostess Brands Inc. is close to reaching a deal that will sell its Twinkies and other cake brands to private-equity firms Apollo Global Management LLC and C. Dean Metropoulos & Co. for more than $400mn, according to sources familiar with the negotiations.
Details of the discussions are not yet made public and sources say that the deal, which is part of the bankruptcy reorganization by the iconic brand, is not yet final.
Other potential buyers in the auction could top the so-called stalking horse bid, in which case both Apollo and Metropoulos would be entitled to a breakup fee. Some sources believe that the deal will not be finalized until later in the week, but the parties are pushing to get the deal done by Tuesday.
The giant buyout shop Apollo, which was co-founded by Leon Black, and Metropoulos, which owns the Pabst Blue Ribbon beer brand, have emerged as the leading candidates to acquire Hostess’s cake brands. Discussions about the sale have gained momentum in recent days, which could likely lead to a deal, according to sources familiar with the talks.
On Monday, Hostess announced two more sale deals. It was selling its bread brands including Eddy’s, Sweetheart, Grandma Emilie’s and Standish Farms to United States Bakery Inc. and its Drake’s brand to McKee Food Corp.