Posted on 03/13/2013 6:30:23 AM PDT by xzins
Hostess Brands Selects Apollo Global Management and Metropoulos & Co. as Winning Bidder for Majority of Snack Cake Business, Including Twinkies®
Agreement Includes Both Hostess® and Dolly Madison® Brands
Company to Seek Court Approval of Sale on March 19
KANSAS CITY, Mo., March 12, 2013 - Hostess Brands Inc. ("Hostess Brands" or "the Company") announced that the stalking horse bid submitted by affiliates of Apollo Global Management, LLC (NYSE: APO) (collectively with its subsidiaries "Apollo") and Metropoulos & Co. ("Metropoulos") for the majority of the Company's snack cake business, which includes both Hostess® and Dolly Madison® branded products, will be the bid presented for approval to the U.S. Bankruptcy Court as no other qualified bids were received for those assets.
Apollo and Metropoulos have agreed to pay $410 million to purchase the brands, five bakeries and certain equipment. Among the products included are the Company's Twinkies®, Ho Hos®, Ding Dongs® and Donettes® snack cakes. The Company will ask the U.S. Bankruptcy Court for the Southern District of New York to approve the transaction at a hearing on March 19.
"The agreement results in significant value for our stakeholders and we look forward to putting the proposed transaction before the Court next week," said Hostess Brands Chairman and Chief Executive Officer Gregory F. Rayburn.
As previously announced, Flowers Foods, Inc. has agreed to pay $360 million for the majority of the bread business assets. The agreement includes, in addition to the brands, 20 bakeries, 38 depots and other assets. In a separate transaction, Grupo Bimbo, S.A.B. de C.V. ("Grupo Bimbo") was selected as the winning bidder for the assets related to the Company's Beefsteak® bread business at the conclusion of a Feb. 28 auction. Grupo Bimbo has agreed to pay $31.9 million for the Beefsteak® assets. The Court will also consider approval of these brands at the same March 19 hearing for the Hostess® and Dolly Madison® brands.
On March 15 Hostess Brands will conduct an auction for its Drake's® snack cake business and Sweetheart®, Standish Farms®, Grandma Emilie's® and Eddy's® bread businesses. The combined stalking horse bids for those assets total approximately $56.6 million.
Jones Day provided legal advice to Hostess Brands on all of the transactions. Perella Weinberg Partners served as the Company's financial advisor.
Original Title shortened because too long for Free Republic standards.
Piss off a liberal. Eat a Twinkie.
/sarc
Any takeover of existing Hostess facilities and employment of former Hostess workers would appear to be optional under the arrangement outlined.
If they can establish a non union operation, they might be able to make it. Hostess products are a nutritionist’s worst nightmare, but they have a niche in the market.
I wonder how many ex-bakers union employees will be applying for a job with the company under new ownership?
If the new HR department manager is smart, he/she will be ready with a big red “REJECTED” stamp.
“If they can establish a non union operation, they might be able to make it. Hostess products are a nutritionist’s worst nightmare, but they have a niche in the market.”
If I were driving this boat I would open shop in Mexico and ship product into the U.S.
Good point. If I were the new owners, any previous union employees would never get a first interview.
Hostess was my favorite brand of snack cakes. It looks like they might be on the market again some day.
I think Hannity should hand them out to all his liberal guests for a week after they come back on line.
I assume since they bought the brands, the equipment, and 5 of the bakeries that they have no obligation to the old unions.
It’s the bakeries that worry me. If they set up shop in those old towns, then the job pool will all be pro-union.
I’d strip the equipment and move elsewhere to a right-to-work state. Then I’d sell the building shell.
Does this mean my Devil Dogs will be back?
I’m wondering if they are being forced to take the union employees. A little while back, the union head was on an interview and threatened to have the big unions boycott the brands if they didn’t get their jobs.
I don’t care for unions, but I still bought my favorites: HoHo’s, DingDongs, Zingers.
I imagine unions can decide they don’t like Hostess, but people who like their product will still buy, and especially if they’re cheaper due to right-to-work labor.
As I said, I’d strip the 5 factories of equipment and move the equipment to a right to work state.
Yep, and then flush it down with a Coke and really piss off Mika. A twofer!!!
It wasn’t the Coke or the size thereof that p’d off Mika,
it was the idea that a leftist elitist had his dictates thwarted.
Good luck with running a successful boycott with the support of unemployed former union employees of Hostess. If the union thug even has to make such a treat, it is probably a good sign it ain't going to happen, at least not on any large scale.
For every one they get to join the boycott, I'm betting they get ten former customers back for Twinkies alone.
Make sure it is at least a 20 oz. Coke.
my fave is the Ding Dongs!
great news!
I’m looking forward to Drake’s cakes returning at some point. I really like their little fruit pies.
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