Hostess set to announce lead bidders for Twinkies
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, already has announced separate lead bidders for its other brands. McKee Foods, which makes Little Debbie snack cakes, was chosen 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 chosen as the lead bidder for six of Hostess’ major bread brands, including Wonder.
United States Bakery Inc. was chosen as the lead bidder for a number of smaller bread brands.