The new owner of Hostess Brand cakes looks forward to having Twinkies and the other loved snack cakes on store shelves by summer time, Reuters reported on March 12.
In a joint venture between C. Dean Metropoulos and Apollo Global Management, they set out to purchase Hostess cakes and placed their bid with the intent to purchase Hostess.
Three other companies expressed interest over the last couple of weeks in purchasing Hostess snack cakes. Hostess creditor Silver Point Capital submitted a letter of intent to Hostess bankers to purchase the snack cakes. Hurst Capital, a hedge fund company also wanted to make an offer, and Grupo Bimbo who is the Mexican baking plant behind Entenmanns.
The three companies needed to place their bid to the judge prior to March 11. The bid needed to be more than C. Dean Metropoulos and Apollo Global Management staring bid of $410 million.
However in an auction held on Monday, the only bid before the judge in bankruptcy court was from C. Dean Metropoulos and Apollo Global Management for $410 million.
None of the three companies followed through with a hard offer; and the attorney for Hostess confirmed the auction cancellation. The sale date is for March 19, making the new owners C. Dean Metropoulos and Apollo Global Management.
“Our family is thrilled to have the opportunity to reestablish these iconic brands, with new creative marketing ideas and renewed sales efforts and investments.” C. Dean Metropoulos’ son Daren, who is a principal at his family’s private equity firm said.
Hostess wants the bid to start at $400 million, so in January, C. Dean Metropoulos and Apollo Global Management offered a starting bid of $410 million to purchase Twinkies.
C. Dean Metropoulos and Apollo Global Management will be purchasing these cakes: Twinkies, Cup Cakes, Ding Dong, Ho Hos, Suzy Q, Zingers, Dolly Madison and Mini Muffins. They will also get five bakeries and equipment with some other assets which are all part of the purchase plan.
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