Hostess Brands Inc. announced that it has selected affiliates of Apollo Global Management, LLC and Metropoulos & Co. as the stalking horse bidder for the majority of the assets of the company's snack cake business, which includes both Hostess® and Dolly Madison® branded products, including the iconic Twinkies® brand.
Apollo and Metropoulos have agreed to pay $410 million to purchase the brands, 5 bakeries and certain equipment.
"We are pleased to name Apollo and Metropoulos as the stalking horse bidder for these valuable and beloved brands," said Hostess brands chairman and chief executive officer Gregory F. Rayburn, in a prepared statement. "Interest in these iconic brands has been intense and competitive and we expect that to continue through a robust, court-authorized auction process. The ultimate goal will be the same we have had since we began marketing all of our assets – to maximize value for all of the company's stakeholders and ensure these great products can be enjoyed by their loyal fans for many years to come."
Hostess Brands has requested that the U.S. bankruptcy court for the southern district of New York authorize the company to proceed with an auction for the majority of the assets of the snack cake business on March 13, provided the company receives competing qualified bids. The company will select the highest and best offer at the conclusion of the auction. The sale to the winning bidder requires court approval.