Two investment firms have been chosen as the bidders to beat for the Hostess Brands snack cakes division that includes the iconic Twinkies and that is being auctioned off as part of the Hostess bankruptcy proceedings.
The two firms are Metropoulos & Co. and Apollo Global Management LLC. Known as “stalking horse” bidders, other firms must beat their $410 million bid to acquire the division. David B. Durkee, international president of the Bakery, Confectionery, Tobacco Workers and Grain Millers (BCTGM), says:
We share these bidders’ goal of quickly restoring Twinkies®, CupCakes®, Ding Dongs® and Ho Hos®, among others, to shelves across America, and view new, serious ownership as a necessity for building a sustainable model for these brands moving forward. The BCTGM looks forward to the opportunity to work together productively; and is now engaging with bidders who recognize the value that we can bring to an ongoing business.
Stalking horse bidders have been selected for the other divisions and winning bids are expected to be announced in early March.
A history of mismanagement and debt drove Hostess into collapse, despite efforts by the workers to strengthen the company.