It seems impossible to believe that there wasn’t a knock-down drag-out fight over who got to buy Twinkies, but Hostess Brands Inc. says that its snack cake business won’t be going to auction after all. Hostess received only one bid, from private equity firms Apollo Global Management and C. Dean Metropoulos & Co., which offered $410 million for the business in January.
That number was supposed to serve as the minimum number for the auction, which the court approved in February, as part of bankrupt Hostess’s plan to liquidate its assets. Though Mexico’s Grupo Bimbo seemed interested, in the end no one else bid, and the snack cake business, including not just Twinkies but other cakes such as Suzy Q’s and Cup Cakes, is going to the private equity firms.
In a press release, Apollo said it expects the deal to close by the end of April.
Read more at Thomson Reuters.
Follow Hostess’s story on InsideCounsel:
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Hostess lines up bids for Drake’s snack cakes and bread brands
Flowers Foods will buy some Hostess brands
Hostess’s union requests Chapter 11 trustee supervise liquidation
Court grants Hostess permission to liquidate
Hostess announces liquidation, the end of Twinkies
Hostess will seek to liquidate if striking workers don’t return to their jobs
Hostess imposes wage-cutting contract on workers to avoid going under
