Saturday, 30 July 2016
Last updated 20 hours ago
Mar 12 2013 | 12:59pm ET
Private equity firms Apollo Global Management and Metropoulos & Co. will win the auction for most of Hostess Brands' iconic snack-cakes business, including the Twinkie—by default.
The two submitted the only bid for the business by yesterday's 5 p.m. deadline, the New York Post reports. The firms offered $410 million for the business, which also includes CupCakes, Ding Dongs, Ho Hos, Dolly Madison and Donettes.
The deal is good news for snack-cake lovers, who could see their favorite treats back in stores by September. But it isn't good for the 18,000 workers who lost their jobs when Hostess filed for bankruptcy in November: Apollo plans to outsource distribution and will not rehire all of the laid-off bakers.
For a while, it appeared that Apollo and Metropoulos would have some competition for the Hostess brands. Silver Point Capital, a Hostess creditor, had expressed interest in making a bid, and hedge fund Hurst Capital had cobbled together several private equity firms to explore an offer. In addition, Mexican baking company Grupo Bimbo considered taking part in tomorrow's auction.