Hostess set to announce bidder for Twinkies


Share
Originally Posted Online: Jan. 29, 2013, 11:56 am
Last Updated: Jan. 29, 2013, 9:15 pm
Comment on this story | Print this story | Email this story

 

NEW YORK (AP) — The indestructible Twinkie appears to be one step closer to a comeback.

Hostess Brands is close to announcing that it has picked two investment firms — C. Dean Metropoulos & Co. and Apollo Global Management — as the lead bidders for its Twinkies and other snack cakes, according to a source close to the situation who was not authorized to comment publicly on the talks.

The joint "stalking horse" bid would set the floor for an auction process that lets competitors make better offers. A judge would have to approve any final sale.

After years of management turmoil and turnover, Hostess declared it was going out of business and selling its brands in November. The company, based in Irving, Texas, has already announced separate lead bidders for its other brands. McKee Foods, which makes Little Debbie snack cakes, was picked as the lead bidder for Drake's cakes, which include Devil Dogs, Funny Bones and Yodels.

Flowers Foods, which makes Tastykakes and a variety of breads, was picked as the lead bidder for six of Hostess' major bread brands, including Wonder.

United States Bakery Inc. was picked as the lead bidder for a number of smaller bread brands.

Citing sources close to the situation it did not name, the Wall Street Journal reported Tuesday that the offer for Twinkies and other snack cakes by C. Dean Metropoulos and Apollo would be for more than $400 million. The report said that the deal could be disclosed as early as Tuesday. C. Dean Metropoulos owns Pabst Brewing Co.

A representative for Apollo declined to comment. A representative for C. Dean Metropoulos did not return calls for comment.

Hostess has stressed in bankruptcy proceedings that it needs to move quickly in the sale of its brands to capitalize on the outpouring of nostalgia and media coverage prompted by its demise. The longer the cakes and breads are off shelves, the more people will become accustomed to eating cakes and breads by rivals, the company has said.

 
















 




Local events heading








  Today is Tuesday, Sept. 16, the 259th day of 2014. There are 106 days left in the year.

1864 — 150 years ago: A fine lumber mill is on the course of erection at Andalusia. A flouring mill at that location is doing a fine business.
1889 — 125 years ago: J.B. Lidders, past captain of Beardsley Camp, Sons of Veterans, returned from Paterson, N.Y., where he attended the National Sons of Veterans encampments.
1914 — 100 years ago: President Wilson announced that he had received from the imperial chancellor of Germany a noncommittal reply to his inquiry into a report that the emperor was willing to discuss terms of peace.
1939 — 75 years ago: Delegates at the Illinois Conference of the Methodist Church in Springfield voted to raise the minimum pay of ministers so that every pastor would get at least $1,000 annually.
1964 — 50 years ago: An audience of more than 2,600 persons jammed into the Davenport RKO Orpheum theater with a shoe horn feasted on a Miller-Diller evening that was a killer night. Phyllis Diller sent the audience with her offbeat humor. And send them she did! It was Miss Diller's third appearance in the Quad-Cities area.
1989 — 25 years ago: A few years ago, a vacant lot on 7th Avenue and 14th Street in Rock Island was a community nuisance. Weeds grew as high 18 inches. Today, the lot has a new face, thanks to Michael and Sheila Rind and other neighbors who helped them turn it into a park three weeks ago.





(More History)