Never fear, lovers of sugary, cream/fruit filled Hostess cakes and pies: Your beloved Twinkies, Ding Dongs, Cup Cakes, and other iconic snacks are making a comeback thanks to a judge’s decision made on March 19, 2013.
According to CNN, a bankruptcy court judge gave final approval for the sale of most Hostess Brand assets, including trademarks and other intangibles, to two equity firms: Apollo Global Management and Metropoulos & Co. The final price tag was $410 million and with the sale, consumers can expect to see Twinkies, Ho- Ho’s, Ding Dongs, and other popular favorites back on store shelves this summer.
Hostess had a large and diverse portfolio of brands and it looks like they will be divided up and sold to various businesses. The above two equity firms will gain control of the popular snack cakes while Wonder Bread and most other Hostess breads will go to Flowers Foods, which purchased the assets for $360 million. Beefsteak bread brand, another Hostess product, will be acquired by Mexican- based Grupo Bimbo for $31.9 million.
Add everything up and you have a total sales price of more than $800 million so far. It’s a large price tag, but not unreasonable when you consider the popularity and instant name recognition of these brands.
Hostess declared bankruptcy a few months ago following a worker’s strike staged by members of Hostess’ bakers union. Job losses were high, but there is a chance that some can return to work under the new management. The sales included the purchase of many former Hostess bakeries and thousands of employees will be needed to bake the cakes, package the pies, and deliver the goods.
Further court approval will be necessary to finalize the sale of other Hostess brands, such as Drake’s snacks, Sweetheart Bread, Eddy’s, Grandma Emilie’s, and Standish Farms. But in the meantime, anxious consumers can gain a sense of relaxation, knowing that the cream- filled golden sponge cake and other treats they treasured as a child and still love as an adult will return to stores this summer.
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