Twinkie

Apollo-Metropoulos near deal to buy Twinkies

29 Jan, 2013

Hostess Brands Inc. is nearing a deal to sell its Twinkie brand and other cakes to private-equity firms Apollo Global Management LLC and C. Dean Metropoulos & Co. for more than $400 million, said the Wall Street Journal. The so-called stalking horse bid could be topped by other suitors at the auction, in which case Apollo and Metropoulos would likely be entitled to what’s known as a breakup fee. Apollo, the giant buyout shop co-founded by Leon Black, and Metropoulos, owner of the Pabst Blue Ribbon beer brand, have been looking to partner on a deal for some time

According to the Journal, Hurst Capital, a fledgling private-equity firm run by 26-year-old twins, also vied for Hostess’s cake brands, but appears to have fallen short of securing the stalking horse bid.

Flowers Foods Inc., the Thomasville, Ga.-based maker of Tastykakes and Nature’s Own breads, is offering up to $360 million in cash for five major Hostess bread brands—including Wonder and Nature’s Pride—along with 20 plants and 38 depots. In addition, the baking company is offering $30 million for Hostess’s Beefsteak rye brand.

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